Krispy Kreme Financial Analysis

In: Business and Management

Submitted By jgod1414
Words 2471
Pages 10
Financial Analysis:
Krispy Kreme Doughnuts, Inc. operates as a branded retailer and wholesaler of doughnuts and coffee. It engages in the ownership and franchising of Krispy Kreme doughnut stores, which make and sell approximately 20 varieties of doughnuts. These stores also offer a wide variety of coffees and other beverages. As of January 31, 2010, there were 224 Krispy Kreme stores operated domestically in 37 U.S. states and in the District of Columbia and 358 shops in other countries internationally. Of the 582 total stores, 268 were factory stores and 314 were satellites stores.
Krispy Kreme stores are classified as either a factory store or a satellite store. The traditional factory store has the capacity to produce from 4,000 dozen to over 10,000 dozen doughnuts daily. Commissaries, which are production facilities used principally to serve off-premises customers domestically and to supplement factory stores focused on on-premises sales internationally, have the highest production capabilities of Krispy Kreme factory stores. As of
January 29, 2006, there were 11 commissaries system wide, five of which were owned by Krispy Kreme. Satellite stores consist primarily of the fresh shop, kiosk and tunnel oven store formats. Tunnel oven stores contain doughnut heating technology that allows customers to have a hot doughnut experience throughout the day. The fresh shops and the free-standing kiosk locations do not contain doughnut heating technology. In each of these formats, fresh doughnuts, beverages and Krispy Kreme collectibles are typically sold, and the doughnuts are supplied by nearby factory stores. Each of these formats requires less space than the traditional factory store. As previously stated, Krispy Kreme makes and sells over 20 varieties of doughnuts, including the Original Glazed doughnut. Sales of doughnuts comprise approximately 88% of total…...

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