Krispy Kreme Trying To Raise Dough To Return To Glory Years

Krispy Kreme
Photo Courtesy: UPI

WINSTON-SALEM, N.C., Sept. 10 (UPI) — About a decade ago, Krispy Kreme was rolling in the dough—the hottest donut-maker in the country that regularly saw locations sell out of inventory and customers stand in lines that stretched out the door.

Those were the days.

Krispy Kreme maintains a slightly lower profile today—a donut-maker relegated to tough competition with rivals like Dunkin’ Donuts.

Stock of the North Carolina-based company is down 20 percent this year—its lowest level in two years—and fell 12 percent on Wall Street Thursday.

The violent dunk was mainly due to an earnings report that fell short of what analysts were expecting. Conversely, Dunkin’ Donuts stock is up nearly 15 percent this year.

Part of the problem, some experts say, is the low appeal of the Krispy Kreme brand away from its stores. Products the company sells in supermarkets have not performed well, effectively limiting the donut-maker’s fiscal strength to one revenue channel.

Retail products under the Dunkin’ Donuts brand, meanwhile, perform well.

New Krispy Kreme chief executive Tony Thompson, who took the reins last year, has said the company is focusing more on international expansion and less on pushing other consumer products.

The company’s earnings report noted modestly increased revenues from year to year and slightly higher net income.

Krispy Kreme also repurchased 1.5 million shares of its common stock at a total cost of nearly $27 million.


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