Krispy Kreme Doughnuts, Inc. From the income statement from Krispy Kreme Doughnuts, we can understand that the annual results show a consistent, rapid growth from the Jan 2000 statement through the Feb 2004 statement, with a final net income for the 2003 fiscal year at nearly ten times that of the 1999 fiscal year and a final EPS for the 2003 fiscal year at more than 6 times that of the 1999 fiscal year. Looking at the first quarter and second quarter comparisons for 2003 and 2004, we can clearly see that “discontinued operations and impairment charges and closing costs” are major factors that dragged net income down significantly. The large amount of these two types of costs, especially discontinued operations, is signs of corporate strategy problems and operational inefficiencies. In addition, the decrease in income from operations is larger in the second quarter than it was in the first quarter of 2004, suggesting that Krispy Kreme Doughnut’s financial difficulties may be worsening. In addition, “equity loss in joint ventures” has increased in negative figures for four consecutive years from 2001.
It has been reported that less than 1 percent of new products generate more than $25 million in first year of sales. Snack chip competitors rely heavily on electronic and print media advertising, consumer promotions, and trade allowances to stimulate sales and manufacturers often rely on price deals to attract consumers. The technology used to produce snack chips allows manufacturers to react quickly to new products introduction by competitors. Extensive sales and distribution systems employed by national brand competitors also allows them to monitor new product and promotion activities and place competing products quickly in the supermarkets. Snack chips are sold by national brand firms, regional brand firms, and private brand firms.
Perceived Value Chain…………………………………………….17 Introduction Founded by Vernon Rudolph in 1937 Krispy Kreme doughnuts began producing doughnuts with the intention to sell them to grocery stores. Today, there are over 500 Krispy Kreme stores in 21 international markets. Since becoming a global firm there has been several structural changes which led to a massive expansion in the mid 1990’s. KKD began to realise that they had over expanded when accounting practices that were questionable were identified and caused a plummet in their stock price. The changing needs of consumers, who are looking for healthier products, lower priced food and convenient store locations has become an increasing issue that competitors have picked up on.
By 1971, the children were grown and Oscar and Evelyn, now in their early fifties, made the decision to move their basement shop to Los Angeles, California. Once settled in, with the rest of what remained of their savings, they opened “a 700 square foot store, and named it “The Cheesecake Factory.”1 They both worked long hours, Evelyn focused on baking and managing the store while Oscar focused on selling and promoting the business. By 1975, Oscar and Evelyn’s reputation had grown. Their sales had ballooned and they needed to expand just to keep up with the incoming orders. This was the time when Evelyn became creative and created more than twenty different variations of her cheesecakes and other delicious desserts.
KRISPY KREME DOUGHNUTS IN 2005: Are the Glory Days Over? Case study August 6, 2010. Krispy Kreme Doughnuts in 2005: Are the Glory Days Over? Introduction: It seemed as if Krispy Kreme had a very bright future until 2004. By that time Krispy Kreme had 357 stores in 45 states, Canada, U.K, Australia and Mexico.
Krispy Kreme Doughnuts, Inc. Krispy Kreme Doughnuts began as a single doughnut shop in Winston Salem, North Carolina in 1937. By the start of the new millennium, Krispy Kreme was not only able to boast iconic status but nearly had a cult-like following. Less than a year after its initial public offering in April 2000, Krispy Kreme shares were selling for 62 times earnings. As it had a tremendous increase in bottom line and brand recognition, it formulated an aggressive strategy to expand. Its shops tripled from 2000 to 2004, with 427 stores in 45 states and four foreign countries.
Running head: Dollar General 1 Dollar General Columbia College RUNNING HEAD: Dollar General 2 Dollar General Dollar General is the leader when it comes to discount dollar stores with an annual profit of more than $12.73 billion a year. The major competition in the dollar discount stores for Dollar General in order are Family Dollar and the Dollar Tree. Another key player in discount stores is Walmart, although not a dollar discount store Walmart dominates all markets with $419.24 billion in revenue. 2011 brought on a year of expansion for Dollar General with plans to open up 650 new stores and remodel another 550 creating 6.000 new jobs in additional employees. Dollar General in owned by Koldberg Kravis Roberts & Co. L.P (KKR) who own more than 79% of all shares in Dollar General.
In 2003 the founders could see that Innocent Drinks had grown at a compound rate of 63% over the preceding four years gaining 30% of UK’s smoothie market. They felt that they were plateauing, that they had the means to keep money coming in but they wanted to grow. At the same time their investor Maurice Pinto is giving them advice “You guys should think like chef. You may spend most of your time working on the main dish, but you’ve always got something cooking, some kind of side dish, on the back burner” (Sahlman, 2004). I personally feel if a major investor in the company is prompting change then the company
Their business strategy focuses on revenue from their on-premise sales, off-premise sales, manufacturing and distribution, and franchise royalties and fees. Almost 60% of the sales at Krispy Kreme were attributed to the glazed doughnut. After doing well, Krispy Kreme decided to expand; they increased the number of stores by 500. They did so at the cost of product development and quickly lost their competitive advantage. In 2004, the SEC launched an investigation into the company’s accounting practices.
Krispy Kreme is a chain of doughnut stores. Its parent company is Krispy Kreme Doughnuts. Inc, based in Winston-Salem, North Carolina, United States. Since Krispy Kreme was founded in 1937, it has grown into a leading branded specialty retailer, producing more than 5 million doughnuts a day and over 1.8 billion a year. In the 1990s, Krispy Kreme grew rapidly to the national phenomenon with 366 stores in 44 states.