Poor, Poor Krispy Kreme. They have come upon hard times. But didn’t someone think it was weird that a doughnut company was trading for $60 a share? I mean c’mon. Even Dunkin’ Donuts, the sellers of horrible room temperature doughnuts, figured out you can’t make a living on doughnuts alone…you have to partner with an ice cream company.
There is nothing like a Krispy Kreme doughnut. It is a dream product. Perfection in it’s industry. Many people don’t realize that the Carolina-born treat has evolved into a multi-cultural phenomenon. Over here in the U.S., the once pristine Krispy Kreme brand has been damaged by corporate scandals, and lawsuits from their franchisees. But, overseas, there is a new customer base in the that doesn’t care about any of the internal workings of a company that makes damn good pastries.
The U.K. is a big fan of the neighborhood bread and pastry venue. With places like Greggs and Pret-a-Manger
(now owned by McDonalds) on every corner, Krispy Kreme has the potential to expand as far as Starbucks with the brits.
The interesting thing about the whole Krispy Kreme enterprise overseas is that their doughnuts are perceived as delicacies…a “specialty shop” of sorts. A Krispy Kreme location over there would be like a Godiva Chocolateers or Haggen Daas location over here. High-end Shopping Malls, busy pedestrian centers, etc. Londoners so much more active than Americans they never worry about sitting on their rumps too long and adding another love handle…which is a big reason for the Krispy Kreme U.S. decline. Damn Atkins diet.
I am interested to see how the company progresses in coming years and if the overseas market compensates Krispy Kreme’s stateside shortcomings. The stock is trading at $4.95 at the time of the entry. Click here
to check it now.