1937 – Founded by Vernon Rudolph, KK opens first store in North
1940s-1950s - Build own mixing plant and distribution system.
1960s-1970s - Krispy Kreme begins to expand their stores.
1990s - Continue expansion that include stores in New York and
Krispy Kreme Profile
Founded In 1937
Headquartered in Winston-Salem, North Carolina
Products – Doughnuts (30 kinds), soft drinks (espresso, chillers),
hot drinks (coffee)
Revenue – 510.21 million USD (2006)
Net Income - 88.45 million USD (2006)
Employees – 4,250
Krispy Kreme have stores located all over the US
Stores have not been limited to only the US (Canada, United
Kingdom, Mexico, and Australia)
Krispy Kreme can be found in grocery stores (Wal-Mart & Target),
convenience stores, and gas stations
Two Locations in Oregon
16415 NW Cornell Road
Beaverton, OR 97006 US
9950 S.E. 82nd Avenue
Portland, OR 97266 US
Freestanding: Most free-standing Krispy Kreme stores are
constructed with a long window between the customer area and the
kitchen, allowing customers to watch the operation of the doughnut-
Smaller Stores: Most of the smaller stores get their donuts from
other locations rather than producing them on-site.
Atmosphere: Very welcoming,
with bright lighting. Seating is
limited but available. Factory
tends to pull curious customers
Advertisement / Marketing
Free doughnut strategy – “Hot Now”; free doughnut while waiting
TV ad campaign
Gifts/Accessories – shirts, sweatshirts, hats, boxers, coffee, mugs,
Fundraising – helped schools raise over $30 million last year (selling
doughnuts, coffee, certificates, and partnership cards).
Store Layout: Factory inside the store where you can watch how
the donuts are made.
Reputation: Krispy Kreme has always been known as and has had a
reputation of being the best.
Hot Now: When the Hot Now sign outside the store is lit you can
get hot and fresh original glazed donuts.
KK went public in April 2000 at $21/share, and within a year that
All seemed well for a couple of years, in spite of a few renegade
analysts declaring KK stock “too high, given its modest quarterly
Merrill Lynch downgraded stock to “sell” in October 2002; J.P.
Morgan cut the rating to “underperform” in August 2003.
Many credible Wall Street names held on ‘til May 2004, when KK
stock fell 29% in one day after KK issued a profit warning (they
blamed the low-carb craze seizing the nation). By Sept ’04, the
stock had plummeted 77%.
Shares took another hit in late July ’04, when KK announced
federal regulators were investigating the company.
KK failed to file its SEC reports for over a year (failure to meet
accounting and financial reporting obligations).
. . . and it gets worse . . .
defaulted on loans
unable to borrow more money
two important franchises bankrupt (owed lots to KK)
class-action lawsuit by stockholders
CEO, COO & CFO unloaded shares at peak
caught boosting profits by extorting franchises
sold equipment and booked the revenue before payment was
received – “cooking the books”
independent auditors refuse to sign off on KK’s financial statement
CEO and six key officers fired
rumors of de-listing on the NYSE
Below To The Right
Graph of KK’s number
Stock price of KK on
of retail outets. As the
the NYSE (name KKD)
number of stores
from initial opening in
April 2000 at $21 per
share, to its high of
$49.74/share in August
2003, to its lowest of
less than $4/share in
early 2005, to its
current of $8.41/share.
Krispy Kreme is struggling back into the market eye after a
desperate tussle with near extinction.
January 29th, 2007: KK announced it has finally become current in
its SEC filings, and has since maintained that status.
February 2007: introduction of a new whole-wheat doughnut: “made
with 100% whole wheat . . . and, to make it even better, the doughnut is ONLY 180 calories!”
April 2007: announces change in its board of directors and names
new corporate officers.
May 2007: Files its UFOC (Uniform Franchise Offering Circular), essentially
declaring that it is once again, finally, licensing franchises.
• http://www.krispykreme.com (. . .duh. . .)