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Krispy Kreme Financial Analysis

1826 words - 8 pages

Professor Agbatutu
BUSN 5600
Webster University

History
In 1937 Vernon Rudolph bought a doughnut recipe from a New Orleans French chef and began selling Krispy Kreme doughnuts to local grocery stores in Winston Salem, N.C. People would pass by these stores smelling the delicious scent of Rudolph’s doughnuts and ask to buy hot doughnuts, so Rudolph cut a hole into the wall of his rented building and began selling the Original Krispy Kreme doughnuts to customers who walked by on the sidewalk (History, 2012).
By the 1950s Rudolph and Krispy Kreme were doing well with a few family owned chain stores but the business was not consistent. The doughnuts were ...view middle of the document...

As this company continues innovation they also preserve the original Krispy Kreme experience that Vernon Rudolph first envisioned.
Executive Summary and Products
The company’s mission statement is “to touch and enhance lives through the joy that is Krispy Kreme” (Krispy Kreme 2012). The Krispy Kreme vision says they want “to be the worldwide leader in sharing delicious tastes and creating joyful memories” (Krispy Kreme, 2012). Krispy Kreme also established values based on the founder of the company Vernon Rudolph which states:
‘We believe’...

-Consumers are our lifeblood, the center of the doughnut
-There is no substitute for quality in our service to consumers
-Impeccable presentation is critical wherever Krispy Kreme is sold
-We must produce a collaborative team effort that is unexcelled
-We must cast the best possible image in all that we do
-We must never settle for "second best;" we deliver on our commitments
-We must coach our team to ever-better results

Krispy Kreme offers three categories of products: doughnuts, coffee and beverages, iced drinks and Kool Kreme. Doughnuts consist of original glazed, varieties doughnuts, mini doughnuts, doughnut holes, and featured doughnuts. Coffee and beverages consist of coffee roasts, espresso drinks, and hot chocolate. Iced drinks and Kool Kreme consist of chillers, iced beverages, flavor syrups, doughnut sundaes, classic sundaes, arctic avalanche, cones, milkshakes, and toppings. Krispy Kreme is sure to provide you with a product to satisfy your sweet craving.
Board of Directors and Strategies
Charles Blixt served as Krispy Kreme’s General Counsel on an interim basis from September 2006-Apri 2007. Blixt served as Executive Vice President and General Counsel of Reynolds American Inc from 2004-2006. His experience provided him a solid understanding of Krispy Kreme’s business, values and culture (Krispy Kreme, 2012). Lynn Crump-Caine served as Chief Executive Officer (CEO) of OutsideIn Consulting, a consulting firm specializing in organizational performance and strategy development. Ms. Crump-Caine also served as Executive Vice President of Worldwide Operations of McDonald’s Corporation from 2001-2004. Her experience in the quick-serve industry from her time at McDonald’s allows her to bring much to the Krispy Kreme table (Krispy Kreme, 2012).
C. Stephen Lynn has served as the Chairman of the Board of BBAC, LLC since 2009. Mr. Lynn brings leadership, franchising, strategic planning, and business development skills to the Krispy Kreme board through his experience in quick-service and casual dining restaurant settings (Krispy Kreme, 2012). Robert S. McCoy, Jr. is currently the Chairman of Krispy Kreme’s Audit Committee. Mr. McCoy retired as Vice Chairman of Wachovia Corporation in 2003 and his qualifications as an “audit committee financial expert” under SEC guidelines proves to be an...

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