Of course, it's all baseless conjecture. Just because everyone else's doughnut glaze contains lots of butter doesn't mean Krispy's does. I mean, they are obviously concerned with the fat and caloric content of their products, right? Gotta keep those customers healthy so they can keep coming back for more.
Why don't we contact KK IR to ask for their 67-year-old secret recipe? I'm sure they would be forthcoming.
Hee Hee! I so funny. All I can do is try to be funny at this point after looking at at my Feb 35 and Feb 40 puts. I sure hope they come thru tomorrow, because I understand that they will expire tomorrow. Any thoughts?
Sounds like it is a fluctuating price, and may not last all year. If every $1 mil excess cost equates to $.01 hit to EPS (based on your previous post, although it seems to me it should be more based on 61 mil shares outstanding), then that would equate to a $.015 hit to EPS per month, or roughly $.05 per quarter, as long as the price of butter remains elevated.
Is there a commodity market for butter? Is it even possible to hedge against such a price increase?
Maybe they can just start sending unglazed doughnuts to Kroegers. They're apparently not selling anyway. (Come to think of it, maybe they should just send empty boxes and count them as sales... I mean, it's not like their published numbers are meaningful anyway...)