Of course everyone here understands that even if the SEC turns up something related to the accounting for franchises (which they won't since what they did is fine under SFAS 142), it has no impact on cash profits (actually it will increase cash flow if they restate).
Furthermore, it would have no impact in their year over year EPS growth rates going forward.
reasons why stock price will rebound
Lots of markets to open.
Even at current levles franchisees are profitable
Consumption increases as the retial channel opens
SEC removes cloud
Go bash stupid people somewhere else
it is so fun being corrected by you people. Of course I exaggerated -- I don't know the fully allocated cost of doughnut any more that you do.
Re-read the post and you'll see that I was just reacting to the unsaleable issue.
I think that you can find the real issue if you look hard enough.
A donut costs a lot more than that to make. Please, ignorance is one thing, but stupidity takes you into another whole realm.
Can you say: Advertising, taxes, labor, legal fees, setup costs, overhead, plants, distribution, retirement funds, stock options, to name a few.
These donuts which sell for a lot less than $.99 in every market are not that cheap to make.
"If KKD is not a restaurant chain (which I agree with), why do they keep talking about comparable store sales and weekly stores per sale?" (I meant sales per store, of course.)
"who is they?"
They is KKD.
Please stop calling other people stupid.
You are right on the too many theme, by the way.
I think that the store owner has to make the decison on when to toss stale product, it is difficult to pass that quality decison to them, but given the limited numbe of routes...