Posted on 02/08/2005 2:50:16 PM PST by Willie Green
For education and discussion only. Not for commercial use.
Krispy Kreme Doughnuts Inc. is slashing its payroll by 25%. The number of jobs to be cut was not released by the company, but layoffs will affect employees in its corporate, mix plant, equipment manufacturing and distribution facilities.
The layoffs are the first significant move by Stephen Cooper, who was hired last month as chief executive. Cooper is chairman at turnaround specialist Kroll Zolfo Cooper.
The company (NYSE:KKD) says the cutbacks will result in annual pretax savings of $7.4 million and a cash restructuring charge of $600,000 in its first quarter.
The Winston-Salem-based doughnut manufacturer, whose shares have dropped from $40 in March to less than $8, has also divested a corporate airplane. Krispy Kreme says the move will result in annual pre-tax savings of $3 million and a cash charge of $300,000 in its first quarter.
Krispy Kreme has been investigated by the Securities and Exchange Commission regarding its accounting for franchise buybacks and its earnings outlooks. The company also faces shareholder lawsuits.
Nah, it must be a matter of taste then. I have had some nasty oversized donuts in California that I just couldnt swallow with a full cup of coffee after every bite.
My personal favorite has always been though this little chain of donut shops in OK and Kansas called daylight donuts, nice sized, not to big not to small, a nice light, yet meaty, dough with the perfect amount of glaze on it. They go bad fast, like all yeast donuts should, but they are worth every penny spent on them.
Some of our grocery stores had the best donuts at the best prices.
KK went in to help cut expenses by making an employee not needed for each store. They also cut their competition that way. Only problem is their product sucks.
The grocery stores not only hurt donut shops, but were what drove most chicken franchises out of business.
Why buy fried chicken at the franchise for $13, when the same product costs $3.99 at the grocery store?
I'm suprised you're not comparing them to Shipley's... I thought Shipley Donuts were HUGE in Texas... or is it just Houston?
"Files lawsuit against Dr. Atkins widow!"
"Files lawsuit against Dr. Atkins widow!"
This is my first post. I waited for an important bit of info to share.
I, too, went to that LaHabra opening of KK. My husband was totally grossed out as we had to wait in line by a huge garbage dumpster. This was late in the day, but still a line.
The donuts are kind of good. The glaze reminds me of old Hostess fruit pies from the 70's - 80's. My fav.
The operation is interesting, especially for kids.
However, I knew as they over saturated the mkt they would be in for a fall. I thought of buying stock, holding for a bit then selling....didn't, should have.
My hubby and I like Bob's donuts at the LA Farmer's Market. Have you had them? Ymmmmm. Yeasty.
I guess I'll no longer be a virgin after this post.
This is definately my favorite internet site...after Dogster.com, of course.
Yes, some grocery store doughnuts are very good.
Plus, some places sell their leftovers at half-price just before closing each night.
Now you can say that you gave up your freeper virginity for the sake of Krispy Kreme doughnuts.
Not as extreme as Homer Simpson selling his soul for one doughnut, but sort of amusing nonetheless.
Hello, and welcome. I went with a neighbor and my six year old nephew who got three free donuts waiting in the line (god bless his appetite).
I know the dumpster, but I was there around 1 that afternoon. It was busy for a year and a half and as you say were very interesting to watch.
Their idea of a chocolate donut was a glazed donut with a chocolate glaze on TOP of that. Rather disgusting actually.
They are slow now. real slow without ever a line.
They bought back a all their public franchises so they can go bankrupt I am pretty sure.
Enjoy FR.
They're trying to become a lean organization?
I have the strange need for a Benson & Hedges gold.
I absolutely love a fresh hot glazed Krispy Kreme. But room temperature donuts and the other KK flavors are merely average. It sounds like KK expanded way too fast. I hope they don't go out of business entirely, because hot KK donuts are a very nice treat. As someone pointed out earlier, what made KK so successful initially is that they offered something special. WHen there's a KK on every other corner, the appeal wears off.
the media were complicit in hyping the damn product during the IPO hysteria. i knew it was a loser.
BTW, i did try KK, there was one shop in chelsea and i was very disappointed. give me a cinammon coated or glazed dunkin donut....my mouth is watering.
I went by a store that had just opened in Issaquah (east of Seattle). So many people were coming by that they had somebody outside directing traffic. I waited in line and admired the machinery which reminded me of a story from the kids book Homer Price (perhaps based on an early version of Krispy Kreme). I tried one of their glazed doughnuts and was highly unimpressed.
Krispy Kreme S-CKS! I don't see why so many folks on the UWS went gaga over them. I prefer the Donut Pub on 14th and 7th myself.
See my post above for good donuts in your nabe.
Now if Rutts Hutt went out of business (one location) and stopped selling DEEP FRIED HOTDOGS, I would be VERY pissed.
Entirely natural, feel free to indulge yourself.
The pessimist sees the hole (in the pocket).
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