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Krispy Kreme Doughnuts, Inc. Message Board

  • obama_fraud_vote_mccain obama_fraud_vote_mccain Dec 19, 2009 7:24 AM Flag

    Bring on the Franchises

    Per for 3Q2010 - qtr ending 11/1/09 results, looks like KKD is growing the franchises, which s/b a good thing:

    -- Our domestic franchisees opened two small retail shops in the quarter, one in Arizona and the other in Pennsylvania;

    -- Our international franchisees continued to expand, with a net increase of 15 locations in the quarter, including the first Krispy Kreme shop in Turkey which opened in Istanbul;

    -- We awarded franchise development rights for Thailand and the Dominican Republic;

    -- We continued to increase franchisee support, including hiring personnel with substantial international supply chain experience to support our international expansion and introducing an expanded suite of store support tools for domestic franchisees, including integrated local, national and social marketing, on-line new store design support and a pilot of new food cost management tools

    On the negative side, per the segment info, there’s not much change in the qtr-over-qtr revenue in the franchisee revenue. However, w/ more the # of franchissees growing, I have to believe these #’s start moving in the right direction:
    -- domestic franchis revs went from $1.8 to $1.9 mill
    -- int’l franch revs went from $3.8 to $3.6 mill

    -- store count shows: 84 Company & 479 franchised stores; for a total of 563; vs. 89 compay & 459 franchised last qtr. I’m actually glad to see the company-owned drop slightly; as long as the franchised count keeps going up.

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    • agree

    • Here’s some quotes from the 3Q2010 - qtr ending 11/1/09 results - conference call - w/ respect to franchsing. There’s definitely an emphasis on building out & the franchise concept & trying to make sure the franchisees make money:

      -- A new franchisee opened its first store in Turkey, the first of 25 shops that that franchisee plans to open over the next five years.

      -- we also awarded franchise development rights for Thailand and the Dominican Republic during the third quarter. And we are actively engaged in building our pipeline of scheduled store openings with existing as well as new franchisees.

      -- we also awarded franchise development rights for Thailand and the Dominican Republic during the third quarter. And we are actively engaged in building our pipeline of scheduled store openings with existing as well as new franchisees.

      -- sidenote: looks like they’re focusing company-owned stores in the NC/SC areas: on the company store side, we opened a second new small retail shop in the Raleigh, North Carolina area, and our first new small shop in the Columbia, South Carolina area. We’ve signed a lease agreement for a third small shop in Raleigh and are negotiating five additional sites in our heartland, most of which will result in openings next year.

      -- The Domestic Franchise segment had an operating profit of about 811,000 in the third quarter compared to 1.2 million last year. Revenues were up slightly, but costs were up more. We are increasing spending to improve franchisee support as well as incurring costs to improve our in store merchandising in the off-premises business

      -- Per Q&A, they are getting royalties; however, 1 of the franchisees having fin’l problems

      • 1 Reply to obama_fraud_vote_mccain
      • It's really nice you found something to be happy about. But given this backdrop it isn't quite time to buy KKD: Revenues

        Total revenues decreased 11.4% to $83.6 million for the three months ended November 1, 2009 from $94.3 million for the three months ended November 2, 2008. The decrease was comprised of a 7.2% decrease in Company Stores revenues to $60.0 million, a 3.3% increase in Domestic Franchise revenues to $1.9 million, a 20.6% decrease in International Franchise revenues to $3.6 million, and a 22.3% decrease in KK Supply Chain revenues to $18.1 million.

 
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