Caso krispy kreme

Krispy Kreme Doughnuts, Inc

Summary
• • • • • • • • Introduction to Krispy Kreme Krispy Kreme Downturn Krispy Kreme Finances S.W.O.T. What is the Problem? Critical Issues Alternatives Our Recommendation

Introduction to Krispy Kreme
• Founded by Vernon Carver Rudolph in 1933 • First donut shop (partnered) was in Paducah, KY • Operations were moved to Nashville, TN • Focused on selling togrocery stores • Rudolph opened his own shop in Winton-Salem,NC in 1937 with $25 dollars and a 1936 Pontiac

Introduction to Krispy Kreme
• Out the door • Around the corner • Down the block

Introduction to Krispy Kreme
• Automatic doughnut cutting machine • Air-pressure doughnut pourer • Donut “hole” does not exist • Entire process is automated • “Hot Original Glazed” • The Red LightKrispy Kreme U.S.

Krispy Kreme Worldwide

Krispy Kreme Stock
• Opened on the NASDAQ on April 5, 2000 (KREM) • Bought Digital Java Coffee Company in April 2001 • Moved up to the NYSE on May 17, 2001 (KKD)

Krispy Kreme Downturn
• Low-carb, low-sugar doughnuts • Increase cost in ingredients • Too many stores in too little time • Lack of advertising has caught up with KK

Krispy KremeFinance
Iss 4/6/2000: $9.60 12/28/2001: $45.75 1/31/2003: $30.41 8/18/2003: $49.37 11/5/2003: $44.31 5/5/2004: $32.37 5/10/2004: $20.30 10/27/2005: $4.05 1/16/2007: $11.42 1/16/2008: $2.23 4/18/2008: $3.11

Krispy Kreme Finance–Income Statement
2007 Revenue Total Revenue Cost of Revenue, Total Gross Profit Selling/General/Administrative Expenses, Total Depreciation/Amortization UnusualExpense (Income) Operating Income Interest Income (Expense), Net Non-Operating Other, Net Income Before Tax Income Tax - Total Income After Tax Total Extraordinary Items Accounting Change Discontinued Operations Net Income 461.2 461.2 389.38 71.82 48.86 21.05 28.49 -26.58 -19.55 5.11 -41.03 1.21 -42.24 0 0 0 -42.24 2006 543.36 543.36 474.59 68.77 67.73 28.92 90.9 -118.77 -23.44 5.67 -136.54 -0.78-135.76 0 0 0 -135.76 2005 707.77 707.77 598.28 109.49 55.3 31.93 161.85 -139.6 -7.72 -0.06 -147.38 9.67 -157.05 -41.29 -1.23 -40.05 -198.34 2004 649.35 649.35 493.65 155.7 45.23 22.31 -0.53 88.68 -5.85 0.16 82.99 33.15 49.85 -1.28 0 -1.28 48.56 2003 490.73 490.73 380.64 110.08 30.07 14.68 9.08 56.26 -2.01 -3.47 50.78 19.72 31.06 0 0 0 31.06

KK Finance–Balance Sheet (Asset)
2007 Assets Cash andShort Term Investments Cash & Equivalents Short Term Investments Total Receivables, Net Accounts Receivable - Trade, Net Accounts Receivable - Trade, Gross Provision for Doubtful Accounts Notes Receivable - Short Term Receivables - Other Total Inventory Prepaid Expenses Other Current Assets, Total Total Current Assets Property/Plant/Equipment, Total - Net Goodwill, Net Intangibles, Net Long TermInvestments Note Receivable - Long Term Other Long Term Assets, Total Other Assets, Total Total Assets 36.24 36.24 0 62.57 27.6 29.51 -2.75 0 34.97 21.01 0 12 131.82 168.65 28.09 0.84 3.22 0 16.86 0 349.49 16.98 16.98 0 73.8 37.68 39.18 -13.66 1.15 34.97 23.76 0 32.49 147.03 205.58 29.18 1.11 8.6 0.04 19.32 0 410.86 27.69 27.69 0 45.71 44.77 40.64 -11.38 0.94 0 28.59 0 17.38 119.36 309.21 32.69 1.695.97 2.12 9.23 0 480.28 21.03 21.03 0 71.82 63.09 46.09 -1.27 0.75 7.97 29.82 0 14.83 137.5 287.49 197.16 0 14.58 6.56 13.31 0 656.6 55.18 32.2 22.98 48.28 45.44 35.83 -1.45 0 2.85 24.37 3.48 9.82 141.13 202.56 0.2 49.15 11.22 1 5.23 0 410.49 2006 2005 2004 2003

KK Finance – Balance Sheet (L+S)
2007 Liabilities and Shareholders' Equity Accounts Payable Accrued Expenses Notes Payable/ShortTerm Debt Current Port. of LT Debt/Capital Leases Other Current Liabilities, Total Total Current Liabilities Total Long Term Debt Long Term Debt Deferred Income Tax Minority Interest Other Liabilities, Total Total Liabilities Redeemable Preferred Stock Preferred Stock - Non Redeemable, Net Common Stock Additional Paid-In Capital Retained Earnings (Accumulated Deficit) Other Equity, Total Total...