Will The Ice Cream Business Save Krispy Kreme (KKD)? No.

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By Douglas A. McIntyre Updated Published
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UnderWith its stock down more than 90% from the highs it reached in 2003,
Krispy Kreme Doughnuts (KKD) is looking for something to restore
the company to same-store sales growth and long-term profitability.

The answer? Small stores, international expansion, and soft-service
ice cream, the company hopes.

Interesting. Ice cream? Why doesn’t Krispy Kreme just go ahead and
open an airline? Or perhaps an SUV assembly plant? Krispy Kreme’s
rapid expansion in the first part of this decade damaged the company’s
brand irreparably and, by pouring resources into an ice cream
campaign, Krispy Kreme is doubling down on unhealthy foods even as
healthy eating becomes increasingly popular, and entering a crowded
space where the Krispy Kreme has no particularly competitive
advantage.

Krispy Kreme has been trying to turn things around for year with no
success and ice cream is the best idea it can come up with, the tide
probably won’t turn anytime soon.

Zac Bissonnette

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About the Author Douglas A. McIntyre →

Douglas A. McIntyre is the co-founder, chief executive officer and editor in chief of 24/7 Wall St. and 24/7 Tempo. He has held these jobs since 2006.

McIntyre has written thousands of articles for 24/7 Wall St. He is an expert on corporate finance, the automotive industry, media companies and international finance. He has edited articles on national demographics, sports, personal income and travel.

His work has been quoted or mentioned in The New York Times, The Wall Street Journal, Los Angeles Times, The Washington Post, NBC News, Time, The New Yorker, HuffPost USA Today, Business Insider, Yahoo, AOL, MarketWatch, The Atlantic, Bloomberg, New York Post, Chicago Tribune, Forbes, The Guardian and many other major publications. McIntyre has been a guest on CNBC, the BBC and television and radio stations across the country.

A magna cum laude graduate of Harvard College, McIntyre also was president of The Harvard Advocate. Founded in 1866, the Advocate is the oldest college publication in the United States.

TheStreet.com, Comps.com and Edgar Online are some of the public companies for which McIntyre served on the board of directors. He was a Vicinity Corporation board member when the company was sold to Microsoft in 2002. He served on the audit committees of some of these companies.

McIntyre has been the CEO of FutureSource, a provider of trading terminals and news to commodities and futures traders. He was president of Switchboard, the online phone directory company. He served as chairman and CEO of On2 Technologies, the video compression company that provided video compression software for Adobe’s Flash. Google bought On2 in 2009.

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