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Krispy Kreme Doughnuts, Inc. Message Board

  • brewhaas brewhaas Apr 25, 2000 5:10 PM Flag

    As for book value...

    The company is pretty highly debt leveraged, so
    the Book Value is inflated. You have to figure most
    of the assets (stores) are on leased space, so the
    "real" property value should be backed out of the Book
    Value computation. The true book value is probably
    closer to its IPO price.

    SortNewest  |  Oldest  |  Most Replied Expand all replies
    • I am among those that believe that the current
      P/E of over 60+ is way too high for this type of
      business... The current stock valuation cannot be
      sustained.

      My question is, for those on this board that are
      pretty optimistic about the company, future expansion,
      future earnings, etc., this company has been in business
      for over 60 years, right? Why isn't KK everywhere by
      now? Why should the performance of this company be
      much better now? Sure, they got a cash infusion from
      the IPO, but is this the catalyst for grow that can
      justify a P/E > 60?

      • 2 Replies to sleeplessdad
      • It takes a lot of energy, time and great
        execution to grow a company so that it's everywhere. KREM
        exec's realized this several years ago and have been
        building the infrastructure necessary to deal with growth.
        Instead of looking at the past, I'd look towards the
        future when krispy krem will be everywhere.

      • in America over the years comes from spirit of
        capitalism.
        This was and is (except for the Beatrice
        years) a family owned company. Role play for a second,
        your a father, you own a doughnut shop in the south in
        the 1930's, people, "American's" like your product.
        Why not build a second store? a third, a fourth. Your
        kids take over, grow, change, grow. A little at a
        time. This is the story of a family owned company, then
        more families owned it, a founder and followers who
        make their own mix, packaged and shipped it, make
        their own equipment and lease it, developed which may
        be some of the first franchise relationships.

        The Smithsonian Institute adopted Krispy Kreme as a
        cultrual Icon. Call and ask them why they did. In America
        you can dream and do whatever you want. This group
        has.

        I can not speak to p/e. Value is what the next guy
        or gal will pay. Buy it or Don't .
        This country
        has a way of creating almost mythical characters.
        Before Microsoft, the Beatles and WW2 there was Krispy
        Kreme. Pay the price your willing to.

        Do you
        really wonder why they are not "everywhere". It's
        expensive. Try to to buy land in a major city and deal with
        all the regs. Obviously there was no desire or
        wherewithall to be everywhere and maintain product integrity.
        I think the question is: can we sustain a
        reasonable growth now and maintain the myth?. The key is

        devotion to the worker and to create a magic moment for
        the next customer, get a mix plant near the west
        coast get into Mexico and Never let up, Go KREM

 
KKD
15.36-0.04(-0.26%)Jul 29 4:01 PMEDT

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