The Wall Street Journal (registration required) reports that Krispy Kreme announced a 56% decline in second quarter profits. The company attributed the precipitous drop in profits -- after 3 years of growth -- to a number of factors, including the popularity of low-carb diets, rising gas prices and increased competition from Wal-Mart stores. The company denied that the decline was related to the SEC investigation of Krispy Kreme's accounting practices.
Meanwhile, some stores trying to build good will in Florida communities have met with some resistance. In Palm Beach, Krispy Kreme is offering a deal to children in kindergarten through sixth grade: free doughnuts for every A on their report card. School officials, however, expressed concern about the program in light of the country's struggle with childhood obesity. The company says it was unaware of the school board's concerns. Fifty schools in Palm and Broward counties have launched programs advocating healthier eating and exercise.
Posted by franchiselawblog at August 26, 2004 10:00 AM