With 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