More on the Krispy Kreme slide from The New York Times -- The company intends to shift its focus from revenues to profits after its net income plummeted from $13 million last year to $5.3 milion this year. The company's stock has lost two-thirds of its value since its peak last year -- although in a nice reverse Enron gesture, several Krispy Kreme executives began buying public stock as it declined. The company's chief executive, Scott Livengood, bought 24,000 shares at $20.77 -- for a total investment of about $500,000. The Times article estimates the current value of his investment at $330,000.
Meanwhile, Krispy Kreme management continues to try to return its salad days -- or its doughnut days. The company recently announced a new strategy in the rollout of a sugar-free doughnut and the development of smaller stores where the economics will produce a profit on far less revenue.
Posted by franchiselawblog at September 2, 2004 03:39 PM