Kripy Kreme Financial Statement Analysis

Company Overview:

Krispy Kreme Doughnuts, Inc, is an American global doughnut company and coffeehouse chain based in Winston-Salem, North Carolina.

1937 | KRISPY KREME started from a single doughnut shop |

1973 | Beatrice Food bought the company and quickly expanded in to more than 100 locations. |

1982 | A group of franchisees led by Joseph McAleer completed a leveraged buyout of the company for $24 million. It introduced the “Hot Doughnut Now” neon sign. |

1989 | Krispy Kreme had become debt-free and had slowly begun to expand. |

2000 | Scott Livengood, CEO, took the company public. It is one of the largest initial public offerings. Krispy Kreme share price was $40.63, giving the firm a market capitalization of nearly $500 million. |

2003 | Krispy Kreme had begun to negotiating to purchase a struggling 7-store Michigan franchise. |

2004 | On May 7, Krispy Kreme announced an adverse result that expected earnings was 10% lower than anticipated. Also it planned to divest Montana Millls, a chain of 28 bakery cafés acquired in January 2003 and to close three of new Hot Doughnut and Coffee shops. Krispy Kreme shares closed down 30%, at $22.51 a share. |

2005 | 1) Krispy Kreme expand the number of stores from 144(in 2000) to 500. 2) It had planned to grow internally, with 32 locations planned for Canada and more for the United Kingdom, Mexico, and Australia. 3) Krispy Kreme’s board of directors announced that the company’s previously issued financial statements fro the fiscal year ended February 1, 2004. |

Products are sold in Krispy Kreme stores, grocery stores, convenience stores, gas stations, Wal-Mart, Target and Shaw’s stores in the United States. The company’s growth was steady prior to its initial public offering but profits have decreased in recent quarters.

Company Revenue Sources:

a. On-premises sales: Each factory store allowed consumers to see the production of doughnuts; Krispy Kreme’s custom machinery and doughnut-viewing areas...