Case Study
Krispy Kreme Doughnuts Case Study Solution
Financial Statement Analysis
The Krispy Kreme Doughnuts case study solution solves the case on financial statement analysis. The structure of the solution is outlined below and answers the questions included in the outline
Krispy Kreme Doughnuts, Inc. Background
Corporate Profile
Company Stores
Domestic Franchise
International Franchise
Supply Chain Business Segment
Problem Statement
What is the Problem?
How do you know it is a Problem?
Common Case Study Questions
#1 Who is the decision maker, and what are their responsibilities?
#2 What is the issue and its significance?
#3 Why has this issue risen and why is the decision maker involved?
Analysis of the Case
#1 Identify the issues
#2 Analyze the case data
#3 Generate Alternative Solutions
#4 Select Decision Criteria
#5 Apply Decision Criteria and Analyze Alternatives
#6 Select and Implement Plan
Analysis of Case Data in Exhibits
Exhibit 1 – Income Statements
Exhibit 2 – Balance Sheets
Exhibit 3 – Store Growth
Exhibit 4 – Analysts’ Recommendations
Exhibit 5 – Consensus EPS Estimates
Exhibit 6 – Stock Price Patterns Relative to the S&P 500
Exhibit 7 – Analytical Financial Ratios for Krispy Kreme
Exhibit 8 – Analytical Financial Ratios for Quick Service Restaurants
Exhibit 9 – Common Sized Financial Statements
Case Specific Questions
1. What can the historical income statements (case Exhibit 1) and balance sheets (case Exhibit 2) tell you about the financial health and current condition of Krispy Kreme Doughnuts, Inc.? (Briefly consider the structure and relationship of the financial statements. Does management have any discretion over how the accounts are estimated?)
2. How can financial ratios extend your understanding
Financial Statement Analysis
The Krispy Kreme Doughnuts case study solution solves the case on financial statement analysis. The structure of the solution is outlined below and answers the questions included in the outline
Krispy Kreme Doughnuts, Inc. Background
Corporate Profile
Company Stores
Domestic Franchise
International Franchise
Supply Chain Business Segment
Problem Statement
What is the Problem?
How do you know it is a Problem?
Common Case Study Questions
#1 Who is the decision maker, and what are their responsibilities?
#2 What is the issue and its significance?
#3 Why has this issue risen and why is the decision maker involved?
Analysis of the Case
#1 Identify the issues
#2 Analyze the case data
#3 Generate Alternative Solutions
#4 Select Decision Criteria
#5 Apply Decision Criteria and Analyze Alternatives
#6 Select and Implement Plan
Analysis of Case Data in Exhibits
Exhibit 1 – Income Statements
Exhibit 2 – Balance Sheets
Exhibit 3 – Store Growth
Exhibit 4 – Analysts’ Recommendations
Exhibit 5 – Consensus EPS Estimates
Exhibit 6 – Stock Price Patterns Relative to the S&P 500
Exhibit 7 – Analytical Financial Ratios for Krispy Kreme
Exhibit 8 – Analytical Financial Ratios for Quick Service Restaurants
Exhibit 9 – Common Sized Financial Statements
Case Specific Questions
1. What can the historical income statements (case Exhibit 1) and balance sheets (case Exhibit 2) tell you about the financial health and current condition of Krispy Kreme Doughnuts, Inc.? (Briefly consider the structure and relationship of the financial statements. Does management have any discretion over how the accounts are estimated?)
2. How can financial ratios extend your understanding