Sample Essay on:
Krispy Kreme Doughnuts, Inc. Analysis

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Essay / Research Paper Abstract

A 5 page paper. The paper begins by reporting the current status of this company and its problems and issues. This is followed by identifying priorities, objectives and strategies for the company. The writer also comments on what the company needs to do to gain a competitive advantage.

Page Count:

5 pages (~225 words per page)

File: MM12_PGkrskr.rtf

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Unformatted sample text from the term paper:

M.O.M. rules and DCF issues.] Background/Current Status Krispy Kreme Doughnuts is famous for their out-of-the-fryer hot glazed donuts. In fact, people will line up long before the store opens to get that hot donut, something no other doughnut company offers. They also serve numerous other types and flavors of donuts, crullers and fritters along with beverages. There are about 300 doughnut shops and 200 satellite locations where their products are sold (Bramhall, 2009). More than 80 percent of the stores are franchised and more than half are located in other countries (Krispy Kreme Doughnuts, 2008). They also sell their products to a variety of independent locations, such a convenience stores (Bramhall, 2009). Revenues, gross and net profits have declined steadily over the last few years. As reported by EDGAR, revenues for the last three fiscal years was (in mil): 2006, 543.4; 2007, 461.2; 2008, 429.3; gross profit for the same three years was: 68.8; 71.8; and 49.3 (Hoovers, Inc., 2009). As a comparison, annual sales by chief competitor Dunkin in 2008 (mil) were 517.0 (Hoovers, Inc., 2009). Dunkin is a smaller company than Krispy Kreme but it is quickly taking the market share. Third quarter revenues reported November 2, 2008 reflected another loss of $103.4 million, or, an 8 percent decrease from the same quarter a year ago (Krispy Kreme Doughnuts, 2008). Company stores were down by 11.1 percent, partly because the company closed a number of stores (Krispy Kreme Doughnuts, 2008). In fact, they closed 22 stores and opened 37 new franchised stores in that same quarter, 21 of which were international (Krispy Kreme Doughnuts, 2008). Krispy Kreme is challenged by the same factors as other stores in this industry. Prices of materials such as shortening and doughnut mix have increased as has transportation costs (Krispy ...

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