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Krispy Kreme Doughnuts, Inc. Message Board

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  • rosiescenario rosiescenario Feb 18, 2003 12:50 PM Flag

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    "KKD's company store retail growth is PALTRY, despite large increases in new stores."

    AND will only get worse since the company "cherry picked" the best locations to open first. The low hanging fruit has all been picked.

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    • One of the biggest problems KKD faces is the fact that doughnuts are essentially a breakfast item, and they must try to find ways to generate revenues through the rest of the day---Sure people might drop in and have a cup of coffee or a doughnut at other times--but it is a breakfast item for the most part. Remember the Bagel Chains---very similar and how many of those are around????? What happened with the Bagel Chains? and they were able to sell bagel sandwiches for lunch.

      • 2 Replies to wbuffettman
      • "What happened with the Bagel Chains?"

        Good point. Actually over many years I've seen these restaurant fad stocks come and go.It seems as though the novice investors get sucked into them, paying no heed to valuations and believeing that their initial growth will continue, despite the law of large numbers and the fact that the easiest and best locations are always opened first.

        Rain Forest Cafe, Planet Hollywood,Boston Market, are more recent examples. Then we can go further back in history: Straw Hat Pizza, Pizza Time Theaters come to mind. There are many more.

      • Stuffing some lunchmeat, lettuce, mayo, and a pickle between two halves of a donut would bring in lots of lunchtime customers. Either that or ground beef donut tacos. For dinner, donut hamburgers or grilled chicken donut sandwiches would be a real treat.

 
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