Essay on Krispy Kream

2072 Words Sep 25th, 2010 9 Pages
Krispy Kreme Doughnuts
Teaching Note

Background

Krispy Kreme (KKD) has achieved spectacular growth in the last few years using an area developer model to expand geographically. This case examines the factors that have driven its growth and their sustainability in the coming two years. Students are provided with forecasts made by financial analysts at CIBC. They are then asked to identify and evaluate the assumptions underlying these earnings forecasts. Since the CIBC report does not provide a forecasted balance sheet for KKD, the case can be used to let students learn how to build a forecasted balance sheet. Finally, the case can be used to discuss potential conflicts of interest between analysts and investors that might lead
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|218 |280 |360 |
| | | | |
|Average # company stores |69 |77.5 |83.5 |
|Average # franchise stores |127 |171.5 |236.5 |
| | | | |
|Average weekly sales per store: | | | |
|Company |$72 |$75 |$77 |
|Franchised |53 |60 |65 |
| | | | |
|System Sales (avge stores * weekly sales*52) | | | |
|Company sales |$258,336 |$302,250 |$332,163 |
|Franchise sales | 350,012 |

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