In 2003, you could pick up shares of Krispy Kreme (KKD) for $49. This morning, the are down 19% to $5.10 on bad earnings. Revenues for the second quarter of fiscal 2008 decreased 7.5% to $104.1 million compared to $112.5 million in the second quarter of last year. Company Stores revenues decreased 4.7% to $75.3 million, Franchise revenues were flat at $5.1 million and KK Supply Chain revenues decreased 16.8% to $23.7 million.
KKD lost $27 million for the quarter including at $22 million impairment charge.
Analysts have been offering suggestions about how to turn the company around. Recently Prudential Equity Group suggested that the company get into the coffee business. If Starbucks (SBUX), McDonald’s (MCD), and Dunkin Donuts were not there, that might work.
KKD can now officially put itself on the list of dead end stocks. It does not have a future.
Douglas A. McIntyre
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