1 / 16

Krispy Kreme Doughtnuts (KKD)

Krispy Kreme Doughtnuts (KKD). Matt Pregozen. Krispy Kreme Recommendation. Buy: Limit at $3.65 Sell: Limit at $4.35. Background. 1937- Vernon Rudolph bought secret yeast recipe from a French chef in New Orleans Expanded from local store to nation wide chain of stores

jabari
Download Presentation

Krispy Kreme Doughtnuts (KKD)

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. KrispyKremeDoughtnuts (KKD) Matt Pregozen

  2. Krispy Kreme Recommendation • Buy: Limit at $3.65 • Sell: Limit at $4.35

  3. Background • 1937- Vernon Rudolph bought secret yeast recipe from a French chef in New Orleans • Expanded from local store to nation wide chain of stores • Headquartered in Winston Salem, North Carolina • 580 stores worldwide in 18 countries • 93 company owned and 430 franchisees • 2,700 full time employees Source: http://finance.yahoo.com/q/pr?s=KKDhttp://www.krispykreme.com/history.html

  4. Business Operations • Retailer and Wholesaler of Doughnuts and Sweets • 20 varieties of doughnuts (packaged and unpackaged) • Sells own brand of coffee • Sells equipment and supplies to franchises • Have donut fundraisers with youth groups Source: http://finance.yahoo.com/q/pr?s=KKD

  5. Retail • Standalone store with seating • Makes donuts fresh in store Source: http://www.reuters.com/finance/stocks/companyProfile?rpc=66&symbol=KKD

  6. Wholesale • Sold at supermarkets, convenience stores, gas stations, Wal-Mart, and Target • Deliver boxed doughnuts and unpackaged donuts daily Source: http://www.reuters.com/finance/stocks/companyProfile?rpc=66&symbol=KKD

  7. Stock Numbers • Current Price: $4.21 • P/E Ratio: N/A • Beta: 1.86 • EPS: -$0.01 • 52-Week Low: $1.34 • 52-Week High: $4.75 • Market Cap: $256.94M • Institutional Ownership: 29% As of 3/18/2010 from Google Finance

  8. 1 Month Yahoo Finance: http://finance.yahoo.com/echarts

  9. 3 Month Yahoo Finance: http://finance.yahoo.com/echarts

  10. 6 Month Yahoo Finance: http://finance.yahoo.com/echarts

  11. KKD (Blue) vs Starbucks (Red) vs Tim Hortons (Green) Yahoo Finance: http://finance.yahoo.com/echarts

  12. Competitors • Dunkin Donuts- Privately owned • Starbucks- coffee shop with 8,800 worldwide locations • Over expanded- downsizing and consolidating • Current products are too expensive for consumers • Tim Hortons- fast food restaurant in USA and Canada • Saturated market in Canada with 3,015 stores • Expansion in US faces tough competition Source: http://www.reuters.com/finance/stocks/http://voices.washingtonpost.com/economy-watch/2009/01/starbucks_closing_hundreds_of.html and http://money.cnn.com/news/newsfeeds/articles/reuters/MTFH12232_2010-03-05_17-15-23_N05193145.htm

  13. Social Responsibility • Gave away free donuts during 2008 Election if you voted Source: http://www.usatoday.com/money/industries/retail/2008-11-03-voter-free-stuff_N.htm

  14. Reasons to Buy • Job market is recovering = doughnuts and coffee at office • Rumor that Wendy’s will buy Krispy Kreme • In the middle of restructuring, so future has potential • Upcoming Earnings Report 3/29/2010 Source: http://www.dispatch.com/live/content/business/stories/2009/11/27/WENDYS_KRISPY.ART_ART_11-27-09_A16_MPFQ789.html and http://investor.krispykreme.com/

  15. VAR (Value Added Research) • Original Glazed Donut Taste Test

  16. Quote “Donuts. Is there anything they can’t do?” -Homer Simpson

More Related