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  • TUESDAY NOVEMBER 23 2004 4:08 AM

Krispy Kreme Not As Sweet

Submitted by jake_lex

Edited by Christopher

Krispy Kreme's stock dropped about 16% on a report of a loss of about $3 million for the last quarter. So why is Krispy Kreme losing money? Because Americans have decided they don't want to eat so much deep-fried crap? Well, partially, but not entirely.

"We only see negatives in the Krispy Kreme earnings release this morning," J.P. Morgan analyst John Ivankoe, who has an "underweight" rating on the company's shares, said in a report. "We don't view current earnings or cash valuation as compelling from either a public or private investor perspective."

Krispy Kreme's troubles first surfaced in May, when the company posted its first quarterly loss and cut the number of planned new stores. It blamed the low-carb diet craze for curbing its results.

Some investors have also said company expanded too quickly and that its doughnuts lost some of their cache once they were sold in places like supermarkets and convenience stores.


And to make matters worse, the SEC is investigating Krispy Kreme for accounting irregularities related to buying back franchises.

And, also, a lot of people have figured out they aren't really any better than much cheaper donuts you can get at the store.

By the way, Krispy Kreme's stock has lost about 80% of the value it had since they went public. I bet those people who dumped that boring old GM or Microsoft stock to get in on the Krispy Kreme phenomenon are loving it now.

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Comments
MistressMissy

mistressmissy

Grand Rapids, MI
March 2003

NOV 23, 2004 04:29 AM

donuts make me puke

D0BERMANN

D0BERMANN

Quebec, QC
May 2004

NOV 23, 2004 04:34 AM

MistressMissy said:
donuts make me puke



Bulimia?

D0BERMANN

D0BERMANN

Quebec, QC
May 2004

NOV 23, 2004 04:36 AM

jake_lex said:
And, also, a lot of people have figured out they aren't really any better than much cheaper donuts you can get at the store.


They sell Krispy Kreme donuts at supermarkets in my town...also the wal-mart right beside it.

Yuriel

Yuriel

I'm lost
January 2004

NOV 23, 2004 05:09 AM

I love donuts
but krispy kreme is still better than wallyworld or most supermarket places
( you dont wanna know trust me youll never eat anywhere but a REAL local type donut shop... where they really are made from scratch and fried up again heh)
smile
EL SUICIDO LOCO
psst sounds like krispy kreme got a nice up the butt sans lube *snicker*

totovader

totovader

Minneapolis, MN
OLD SKOOL

NOV 23, 2004 05:17 AM

I never did see what was so special about Krispy Kreme. I still don't see why it's special enough for a news story.

Trevor

Trevor

Colorado Springs, CO
July 2003

NOV 23, 2004 05:44 AM

Damn. I had stock in Krispy Kreme that I sold a while back. Looks like I got out at the right time. biggrin

-Trevor

jason

jason

USA
August 2002

NOV 23, 2004 06:19 AM

jake_lex said:
And, also, a lot of people have figured out they aren't really any better than much cheaper donuts you can get at the store.



thanks for the culinary review but how does a donut get 'much cheaper'? its donuts.

hermetica

hermetica

Cook Islands
January 2004

NOV 23, 2004 06:46 AM

Krispy Kreme.. puke puke puke
A ring shaped fat blob covered in sugar and advertising hysteria.

StudentDriver

StudentDriver

Greenwood, IN
June 2004

NOV 23, 2004 06:49 AM

Krispy Kreme doughnuts aren't anything special when they're purchased from a supermarket, or anyplace else where they've had a chance to sit a while. However, a fresh-from-the-fryer KK doughnut is ambrosia. It's impossible to get fresh doughnuts from anywhere else, really, since they're usually cranked out off-site, shipped, and allowed to grow stale before their sale.

PointBlank

PointBlank

New York, NY
November 2004

NOV 23, 2004 07:23 AM

This story has a lot of holes in it.

Waldo_Jeffers

Waldo_Jeffers

United Kingdom
OLD SKOOL

NOV 23, 2004 08:20 AM

I don't think that Krispy Kreme's are available in the UK yet but no loss there as they sound ultra-sickly. Is anyone here a big fan of them? If so why do you love them so much? I'm just curious, because the article suggests that "a lot of people have figured out they aren't really any better than much cheaper donuts you can get at the store". Would you agree with the article?

Jora

Jora

San Jose, CA
OLD SKOOL

NOV 23, 2004 08:36 AM

StudentDriver said:
Krispy Kreme doughnuts aren't anything special when they're purchased from a supermarket, or anyplace else where they've had a chance to sit a while. However, a fresh-from-the-fryer KK doughnut is ambrosia. It's impossible to get fresh doughnuts from anywhere else, really, since they're usually cranked out off-site, shipped, and allowed to grow stale before their sale.




I agree, but at my old job, we used to get them fresh in the morning from a grocery store and then pop them in the mircrowave for 5 seconds or so and they were incredibly yummy again. They are a bit over-hyped, but they kick the ass of any store bought brand.
surreal

Trementina

Trementina

SUICIDEGIRL

I'm lost

NOV 23, 2004 09:50 AM

Krispy Kremes rock!!! I wish there were Krispy Kremes stores where I live....

Jeff_Fries

Jeff_Fries

Humptulips, WA
September 2003

NOV 23, 2004 09:56 AM

jake_lex said:


Krispy Kreme's troubles first surfaced in May, when the company posted its first quarterly loss and cut the number of planned new stores. It blamed the low-carb diet craze for curbing its results.




Oh shut the fuck up.

Some investors have also said company expanded too quickly and that its doughnuts lost some of their cache once they were sold in places like supermarkets and convenience stores.



There you go. I guess a drive-thru in every semi-major city wasn't the smartest idea after all.

[Edited on Nov 23, 2004 by Jeff_Fries]

Okuma

Okuma

Pensacola, FL
June 2004

NOV 23, 2004 10:11 AM

Krispy Kremes are the best donuts I've ever had, hands down.

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