Aside from the trademark dispute discussed below, some analysts are speculating that the company may explore some sale options in the near future. The predictions follow Krispy Kreme's third quarter earnings statement that showed a $3 million loss for the quarter (or 5 cents per share). This time last year, Krispy Kreme reported a $14.5 million profit.
Although the fragile numbers cause rumors to stir, this article in the Charlotte Observer suggests that the market has not yet given up on Krispy Kreme. It is, after all, a 60+ year-old company with a history of comebacks. For the moment, however, the company's plummeting stock price is on everybody's mind -- it has dropped more than 75% from its 52-week high of $41.73 last December. After the announcement of third quarter earnings, the price dropped to $9.30.
Posted by franchiselawblog at November 29, 2004 04:00 PM