Krispy Kreme Donuts (KKD) wins an award

HappyHarry said: "Not really one they would want either. BusinessWeek names [url=http://www.businessweek.com/magazine/content/05_02/b3915649.htm?campaign_id=yahoo_bestmgrs05]Scott Livengood[/url] one of the worst managers of 2004. This company has really been skidding."

WellsTrader said: "I am a HUGE krispy Kreme fan. I have noticed however they that Kirspy Kreme stops have had less and less inventory throughout the day. Its almost like they grew so fast they can't keep up . I remember when they were a fresh new company on the grow."

HappyHarry said: "Krispy Kreme recently closed a bakery here they just built. It cost around $4 million, was only open for 6 months and employed 150. It seems amazing to me that they would have that big of a problem forecasting sales."

Heather said: "The one thing is that it seems very few donut shops ever close. Streamlining their current operations might be a smart thing to do, any location that doesn't provide the kind of numbers they need get contracted and distributed elsewhere."

lost said: "i thought it was the sudden boom in the diets around the us that killed them. all the buyers decide to eat healthy for some reason."

HappyHarry said: "I wonder about the diets. It's one thing for people to try a diet and it's another thing for them to just quit eating donuts altogether. As Hathor said, Donuts shops rarely go under. There's even some weird local places near me that have been open for years. The cost of making donuts is very low. I just wonder about these managers. Seems like they're making up numbers."

Heather said: "[QUOTE=HappyHarry]I wonder about the diets. It's one thing for people to try a diet and it's another thing for them to just quit eating donuts altogether. [/QUOTE] I think donuts are still an office staple. People bring them into work or to business meetings all of the time. They are relatively inexpensive and generally everyone enjoys them. Donuts and Cider is a fall tradition. People won't stop eating these sugary concoctions."

HappyHarry said: "I wonder if they have any plans to fire LivenGood. That might be something that makes the stock shoot up."

Heather said: "His name is very ironic. Livin' Good."

Maryland said: "looks like KKD is beginning to to rally again, any thoughts for a buy opportunity...or is it too late?"

lil dickie said: "It's never too late, if you think the company is worth it. Have they made enough of a recovery?"

RupertB said: "Krispy Kreme's stock has hit a rough patch for good reason. Under Livengood's watch the company played fast & loose with the numbers & made some serious strategic blunders. They booked aquisition costs as "intangible assets" to make their earnings look artificially high. Several of the franchises they bought were from relatives of senior management; A fact undisclosed prior to the purchases. The Atkins fad may have made a dent in KKD's sales, but their problems are largely the fault of poor management. The quality of KKD's product, the fact that its cheap to make relative to its retail price, is delicious, & has a well-known brand makes me salivate at the prospect of having a stake in the business, but until the current management is replaced, I wouldn't touch it with a 10-foot pole."

granimal said: "Damn, you must be old Wells. They opened in 1937. :D"

Slidingby said: "[QUOTE=Heather]His name is very ironic. Livin' Good.[/QUOTE] I can't believe I missed my chance to point out the irony of the day!! :cool:"