Krispy Kream

FM - 1 GROUP ASSIGNMENT KRISPY KREME DOUGHNUTS (KKD) KRISPY KREME CASE Question #1: CIBC and other analysts argon predicting that Krispy Kreme will continue to perform effectively and grow speedily in the next two years. Do you agree? wherefore or why not? Answer: Based on historical data, Krispy Kreme Doughnuts (KKD) has consistently showed both strong growth in revenues & financial performance. For example, for the FY2001-02, both company and system-wide sales growth significantly above 30%, earning growth was 80%, and return on equity was well above 12%. KDDs long Debt to Equity Ratio (DER) also considered very low of on a lower floor 10%, meaning that KDD still have broad populate to increase their leverage to finance its growth, while maintain reasoned capital structure. In addition to that, KKDs in its 10-K memorial submitted to US SEC has stated its strategic growth plans as follow: Domestic store development: KKD believes that 222 factory stores (stores which consist a full hoop-making production line) as of April 2002 represent slight than one-third of the total factory stores it can ultimately builds in North America.

International store development: KKD also intends to look for international growth opportunities and its initial boil down is on quin countries: Japan, South Korea, Australia, Spain, and the United Kingdom. Based on its initial recognize with the first store in Canada, it seems to believe that these countries represent kind expansion opportunities for the KKD concept. Expanded beverage offerings: One of KKDs focus areas has been on creating a best-in-class beverage opportunity to complement its doughnut offering. With the acquisition of Digital Java, Inc., a small Chicago-based coffee company, in February 2001, KKD acquired significant coffee roasting expertise. Hot doughnut simple machine technology: In the fall of 2001, KKD announced the development of a new hot doughnut machine technology which can... If you motive to get a full essay, order it on our website: Orderessay

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