Krispy Kreme - 990 Words

QUESTION 6: GIVEN YOUR ASSESSMENT OF KRISPY KREME S HEALTH, WHY DID IT S STOCK PRICE DROP BY 80% BETWEEN 2003 AND 2004? The question is what they do wrong for the business that is nearly more than 70 years, what makes them fall so quickly especially in year 2003 and 2004, there are at least 2,300 franchised businesses in Unites States, many that are successful, but there are difficulties in the franchise model, and Krispy Kreme with the combination of ambitions, greed, and inexperience in managed to stumble into most of them. As Krispy Kreme pursued its ambitious growth strategy, it was making mistakes in its finance department as well, except for the company s plan to finance a $35 million mixing plant in Illinois†¦show more content†¦Krispy Kreme also rolled into the price the costs of closing stores and compensating the operating manager and principal owner of the Michigan franchise to stay on as a consultant. Both of these expenses became part of the intangible reacquired franchise rights asset on the company s balance sheet, rather than costs that would have reduced the company s reported earnings. Krispy Kreme announced in a December 2004 8-K filing that it will need to make an adjustment of between $3.4 million and $4.8 million to properly record the compensation as an expense. A second adjustment of some $500,000 will reverse the improper recording of interest income. In its December 2004 8-K, Krispy Kreme revealed that there would need to be adjustments made to the accounting for the Golden Gate Doughnuts purchase as well a total of $3.5 million to correct improperly recorded compensation expenses and management fees that had been included in the purchase price. The company will also make a similar correction to fix errors made in the acquisition of a franchise in Charlottesville, Virginia. The following month, the company announced that the United States Attorney s Office of the Southern District of New York was also joining the fray a move indicating concern about possible criminal misconduct. In April, Cooper shored up the business by securing $225Show MoreRelatedKrispy Kreme4675 Words   |  19 PagesKRISPY KREME Marketing Problem/Executive Summary This presentation will analyze the current market situation, identify possible opportunities and threats and recommend strategic actions for Krispy Kreme Australia. Methods of analysis include SWOT analysis, product life cycle curve, porters five forces and environmental, competitor and consumer analysis. For these we have used information from text books, websites and online news websites. From our analysis we have found Krispy Kreme AustraliaRead MoreThe Kreme Of Krispy Kreme3712 Words   |  15 PagesVernon Carver Rudolph established Krispy Kreme Doughnuts in 1937 in Winston-Salem, North Carolina. Krispy Kreme produced doughnuts on a much larger scale by the 1950’s via an automated system. They introduced their â€Å"Doughnut Theater† in the 1980’s, which allowed its customers to watch the production process, giving them a multi-sensory experience. They were able to expand to California by 1999 because of their one of a kind atmosphere (Krispy Kreme 2011 Annual Report). They opened their firstRead MoreKrispy Kreme4685 Words   |  19 PagesEXECUTIVE SUMMARY Krispy Kreme s recent success has left many individuals in awe. This study attempts to de-mystify how Krispy Kreme has come to dominate the doughnut world and what problems lie ahead in the future. The tools used in this examination will begin with the history of Krispy Kreme. Then an external and internal analysis will dissect Krispy Kreme s current market and what steps Krispy Kreme is taking to compete in that market, including a look into competitors. Krispy Kreme provides equipmentRead MoreKrispy Kreme2068 Words   |  9 PagesWritten Assignment Krispy Kreme Doughnuts, Inc I. Brief History Vernon Rudolph is the brains behind the Krispy Kreme name. He bought a doughnut shop in 1933 and all the assets came along with the purchase, including a secret recipe and name, Krispy Kreme. Rudolph moved to Winston-Salem, North Carolina, where he opened his first Krispy Kreme shop. The business prospered and in the 1950 ¡Ã‚ ¦s over ten other locations were opened. The business was able to produce 500 dozen doughnuts an hour.Read MoreKrispy Kreme1084 Words   |  5 PagesCASE 8: KRISPY KREME DOUGHNUTS Krispy Kreme is a doughnut manufacturer and retailer that were founded in July of 1937. Within its seventy year life time KK went from a small rented out building in Winston-Salem, North Carolina to a global recognizable firm. Through that time KK has become a franchising company that has made changes within its life time. Most of the changes came in the late 1990s and early 2000s. A few years after those changes were made KK management realized that they had madeRead MoreKrispy Kreme in Brazil2535 Words   |  11 PagesWinston-Salem, North Carolina, Krispy Kreme is a chief branded retailer and wholesaler of high-quality doughnuts, including its innovative Hot Original Glazed. Vernon Rudolph bought a secret yeast-raised doughnut recipe from a French chef from New Orleans, borrowed a building in Winston-Salem to bake in, and began selling Krispy Kreme doughnuts to the local grocery stores. Krispy Kreme has sustained its intensification and lengthened the design of the reliable Kris py Kreme store throughout the SoutheastRead More Krispy Kreme Essay1984 Words   |  8 Pages Written Assignment Krispy Kreme Doughnuts, Inc I. Brief History nbsp;nbsp;nbsp;nbsp;nbsp;Vernon Rudolph is the brains behind the Krispy Kreme name. He bought a doughnut shop in 1933 and all the assets came along with the purchase, including a secret recipe and name, Krispy Kreme. Rudolph moved to Winston-Salem, North Carolina, where he opened his first Krispy Kreme shop. The business prospered and in the 1950 ¡Ã‚ ¦s over ten other locations were opened. The business was able to produce 500Read MoreKrispy Kreme2941 Words   |  12 PagesKrispy Kreme Strategic Analysis: Introduction In 2003 Krispy Kreme was named by Fortune Magazine as â€Å"America’s Hottest Brand† and in 2004 they reported net income of $50 million. However over-expansion, an expensive store network, revelations of falsified financial reports and changing trends in diet have meant that Krispy Kreme revenues have declined by 50% between 2005 and 2010 The strategic problem considered is to analyse Krispy Kreme’s current operations and suggest recommendations for howRead MoreKrispy Kreme1663 Words   |  7 PagesKrispy Kreme Doughnuts, Inc. (KKD) is an exclusive brand that offers doughnuts, beverages, collectibles, and franchise opportunities. It started as a small bakery in Winston Salem, North Carolina on July 13, 1937; and has evolved into a publicly traded firm boasting 395 retail stores and over three million dollars in sales (second quarter 2010). This was not always the case however, by the end of 2004, the economy began to slow. This caused businesses in competition with Krispy Kreme to flood theirRead MoreEssay on Krispy Kreme1571 Words   |  7 PagesKrispy Kreme Doughnuts, Inc. FIN Professor XXX XXXX Month xx, xxxx History Krispy Kreme was founded by Vernon Rudolph after he purchased the famous secret recipe of yeast-raised doughnuts in 1937 from a French chef in New Orleans. Rudolph began to sell these doughnuts wholesale to supermarkets. The demand for his doughnuts grew quickly, and by cutting a hole in the wall of the factory to sell directly to customers the concept of Krispy Kreme retail stores was born. The retail concept