Skip to comments.KRISPY KREME HAS GONE OUT OF KONTROL
Posted on 11/23/2004 12:59:52 AM PST by kattracks
Carb-conscious Americans continued to flatten Krispy Kreme Doughnuts, as the onetime Wall Street darling yesterday posted a loss of $3 million in the third quarter.
That bad news sent the stock reeling 16 percent or to just above the $7 price of a dozen assorted sweet things.
The struggling doughnut chain has lost more than 75 percent of its market value since last year as people have suddenly stayed away from the glazed treats in droves, and opted for healthier snacks.
As a result, each Krispy Kreme store has seen $10,000 a week in revenue waddle out the door, a drop of some 16 percent.
(Excerpt) Read more at nypost.com ...
Exactly, they took their eye off the ball, became a franchising corporation instead of a doughnut company. Wendy's did the same thing in the 80s. Expanded too quickly and focused on that instead of their core business and it hurt them too.
KK needs to focus back on its product, and stop worrying about putting an outlet next to every starbucks.
They'd never sell in muslim countries.
Agreed, Bagels generally have more calories than even a KK glazed doughnut.... Not much more however, and are definately more filling. Of course by the time you slab on the cream cheese you could have probably eaten 2 to 3 of those bad doughnuts for the same calories.
Biggest problem with KK is simply they are smaller and over priced, and once they are cool they are nothing more than another doughnut. The thing that makes KK unique and distinct is when you get them fresh and warm.... that's when you have a product that nothing else out there compairs too.
I make cake doughnuts. The grandkids made them with me a couple of times, they have an amazing flavor. A local motel used to buy them from me, fresh, to set out for the tourists, they went over pretty good.
Also sold the holes, lol.
biggest no move of my life, i kept spouting i was going to short this stock as its numbers made no sense, i touted this as the best short on the board and never pulled the trigger!!!!!
i am such a schmuck!!!!!
However As of June 2004, there are over 228 Tim Hortons locations in the United States. These are situated in Michigan, Ohio, New York, West Virginia, Kentucky, Maine, Rhode Island, Connecticut, and Massachusetts. The chain is owned by Wendys. Dave Thomas decided to buy it a few years before he passed away.
Their low-carb argument is a red herring. Over expansion, too much...too quick, and bad financials is what's killing them. Their coffee also taste like #10 diesel fuel.
You don't hear Dunkin Donuts crying about low-carb.
"When you need one."
The cop or the donut?
Buy low. There will always be a market for tasty donuts.
I'm starting an organic donut chain that sells road apples, filled with wild oats. I've got a franchise opening in Boulder. Looking for investors.
A little too sweet for me. I prefer Dunkin's. But then, I'm a New Englander.
You are so wrong. Here in the KK homeland, that "HOT NOW" neon sign lit up in the window would send myself and fellow citizens into Pavlovian fits.
(haven't had one in years, but boy do I miss 'em)
I think if you pack it down real tight, you can cram one into a thimble.
In addition, they did not research adequately before placing their locations. Most that I've seen in Toronto are stand-alone buildings next to Home Depots or in large grocery stores - low volume areas. They haven't penetrated to the core or catered to transit commuters. Their primary competitor, Tim Horton's, outdoes them in many respects, and they are highly diversified (decent coffee, lunch, etc.)
Tim's has smaller, low-cost locations. Much of their inventory is outsourced as well.
Are you series?
mmmmm why is Dunkin Donuts doing sooo well?
They sure did.
Plus they've over-saturated the market. They should've considered that an initial sales surge in previously unserved markets would settle down and plateau, but then nobody asked me.
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