Krispy Kreme started as a single doughnut shop in 1937 when Vernon Rudolph acquired the special recipe from a French chef. Very quickly‚ the doughnuts rose in popularity and the number of shops expanded. By April 2000‚ after the IPO Krispy Kreme shares were selling for 62 times earnings. Krispy Kreme had a share price of $40.63‚ which gave the firm a market capitalization of about $500 million. Since the IPO the company had announced an aggressive growth strategy‚ in which they planned to increase
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Krispy Kreme Doughnuts‚ as discussed in Darden Business Publishing Case UVA-F-1479‚ appears to be at a crossroads. After years of astronomical growth‚ the company find its share price plummeting in the midst of discoveries about faulty accounting practices. The following paper examines several issues behind the sudden decline First‚ the historical income statements and balance sheets are examined to determine the financial health and current condition of the company. This is followed by an analysis
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Case Study in Corporate Finance Krispy Kreme Doughnuts‚ Inc. Presented by – Group A2 Timeline Krispy Kreme Doughnuts‚ Inc. Ratio Analysis Liquidity Ratios As shown in Exhibit 1‚ quick ratio for Krispy Kreme gradually rose from 1.05 to 2.72‚ during 2000 to 2004. And current ratio changed with the similar pattern. Generally‚ a quick ratio of 1 is considered good in most industries. As for Krispy Kreme‚ the quick ratio is always higher than 1‚ and the highest point is 3.25 in 2004. This means
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KRISPY KREME DOUGHNUTS‚ INC. (for Tuesday October 22 presentation) Synopsis and Objectives This case considers the sudden and very large drop in the market value of equity for Krispy Kreme Doughnuts‚ Inc.‚ associated with a series of announcements made in 2004. Those announcements caused investors to revise their expectations about the future growth of Krispy Kreme‚ which had been one of the most rapidly growing American corporations in the new millennium. Your task is to evaluate the implications
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competitors‚ like starbucks‚ mcdonalds and krispy kreme. They can potentially cause a large reduction in DD’s market share in coffee and baked foods. Another threat is that there are low barriers of entry into the coffee and donut industry‚ which actually gives rise to the threat above - presence of many competitors. The price of raw ingredients are also increasing‚ like soybean. It is a threat as DD is now using a reformulated cooking oil‚ made from soybean‚ for its donuts to eliminate trans fats. The increase
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Gina Luari Entrepreneurship 9/20/14 Dunkin’ Donuts Competitive Analysis Dunkin’ Donuts Target Market: the blue color middle class working American‚ both males and females‚ ranging in age from 18-45 Demographic Segmentation: Their salaries range from $40‚000 to $100‚000 annually. They are coffee enthusiasts‚ mainly people on the go‚ and some families. Psychographic Segmentation: a working professional‚ with a family. They are generally in their thirties and enjoy a good coffee drink and occasional doughnut
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INTRODUCTION The Krispy Kreme‚ Inc. case investigates the contributing factors that caused this particular darling of Wall Street’s stock to suddenly plummet more than 80% in 2004. In the year 2000‚ Krispy Kreme went to public and boasts iconic status by became the hottest brand in America. Less than a year after its initial public offering‚ the company’s shares were selling for 62 times earnings. However‚ in 2004 the market was shocked by the company’s stocks that plummeted more than
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Krispy Kreme Doughnuts‚ Inc. (hereinafter‚ “Krispy Kreme”) seemed poised to become an industry leader and Wall Street chart topper in 2000‚ however‚ by 2004 the company’s stock price had plummeted. Krispy Kreme’s stock price one day after the initial public offering in April of 2000‚ was $40.63‚ giving the company a market capitalization of nearly $500 million. Investors believed Krispy Kreme was the next big money maker to enter the market. By 2005‚ Krispy Kreme shares were trading at less than
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Dunkin Donuts was founded in 1950 by Bill Rosenberg. Mr. Rosenberg opened the 1st store in Quincy Massachusetts. Mr. Rosenberg’s goal was to “make and serve the freshest‚ most delicious coffee and donuts quickly and courteously in his stores”. (www.dunkindonuts.com‚ 2012) Dunkin Donuts are now headquartered in Canton Massachusetts. Dunkin Donuts values and principles guide their franchises to success. There values and principles are (www.dunkinbrands.com‚ 2007): Values * Honesty * Transparency
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DUNKIN DONUTS PERFORMANCE MANAGEMENT ANALYSIS EXECUTIVE SUMMARY Performance Management strategy focuses on what is involved in managing the organization. It is a natural process of management‚ not a system or a technique. (Fowler‚ 1990). It is also about managing within the context of the business (its internal and external environment). This will affect how performance operates. (Michael Armstrong‚ 2004). This paper will analyze Dunkin Donuts’ performance management strategy. Dunkin Donuts is
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