donoughts, and while they a re ok, they are no way in hell "the best thing to eat on this earth" in fact i wold say at best they are average, dunkin donoughts are certaiinly much better, and those little powdered ones you buy at the gas station are even better to me. THis company imo shouldnt even be public, let alone have a PE of 96. 96!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!
that is #*#kin unbeleiveable to me!! trust me when this made up fad about these being the bast thing since sliced bread fades--and it will, this thing wil hit 5 sooner than you can say joes crab shack.
I find the light glaze, when first penetrated by the incisors and/or canines, produce a slight, yet definitely internally audible crunch. Similar to a cruller or old-fashioned sour cream glazed donut.
Observations from undecided non-investor:
I visited California 18 mos. ago and visited La Habra KKD. 45 minute wait, lines out the door, drive thru consistently 25-30 cars deep. This was at 10:30 on a Thursday night. This fad will never last, thought I! (remember, Orange county has more donut shops per capita than any other place in the world - there's a donut shop in every strip mall, on every corner)
Now I live in CA. Visited La Habra KKD 9 pm Weds night few weeks ago. Same scenario. People walking away like zombies with 4-5 dozen donuts after 30 minute wait. Parking lot jammed with cars. Drove by Anaheim KKD yesterday 11:00 am. Drive thru 6-7 cars deep. Passed it again an hour later, drive thru 6-7 cars deep. Visited Long Beach KKD two months ago - just as busy.
I know nothing about stocks. Can't understand 95% of the lingo on this board. Only KKD donuts I think are worthwile are the original glazed. I hope all you shorts are right. I'd like to get into this stock at a much lower price. They may sell only donuts, but I think they'll be around for awhile, I think they'll continue to expand. Whatever it is, people like these donuts.
One thing that I forgot to include in my original post was to also ignore all of the individuals like galway who want to compare Krispy Kreme to Coca Cola, WalMart, Starbucks, Cisco, Microsoft, and a million different other companies that have absolutely nothing to do with donuts. The donut industry is a $4.5 billion industry in the United States. Look it up in the Krispy Kreme 10-K. It will give you the same information. They want to compare this tiny donut market to soft drinks, huge retail stores like WalMart, coffee, and computer hardware and software makers. All of these industries dwarf the donut industry in total size. What do these companies have in common with Krispy Kreme? The only thing they have in common with Krispy Kreme is that they are also publicly traded companies. The business models are totally different. The products are radically different. The marketing strategies are different. The means of distribution are different. The overhead structures of the companies are different. The gross margins generated by these companies are dramatically different. The total level of consumption of the products offered by these companies is totally different. The size of customer purchases and the frequency of those purchases are totally different. Think about it.
Don't listen to the nay sayers - they said the same thing about Wal-Mart when WalMart was a 200 store chain and now of course you'd have a fortune if you had of invested even $1000 in WM at that time. HD was another you could have gotten into when they had 200 stores and made a fortune. These "Valuation Experts" don't have a clue and are just some of the roadblocks long term investors run into when they see a sure thing. KKD is a future home run and as sure a thing as exists to double each year in the for seeable future. You can get in 13 points off the high right here and that will make you look like a genius within 6 months after another 2 for 1 split. It has split 2 for 1 twice since I started buying it. You double the number of shares you own every time it splits . Cisco split 2 for 1 every year from 1991 to 1999 and made a ton of Bay area folks rich along the way and it has always way too expensive for most "experts" also. KKD a lot simpler and easier to understand as they make donuts not routers so I just love the hell out of it. No new technology to worry about. They've been makeing the best donuts in the world for a long time now and just like Motherhood and Apple Pie, Krispy Kreme is going to become an American Icon and Institution.
I'm with echo_all4u, and posted it before, I went out of my way to try Krispy Kreme doughnuts just because everyone said they were "to die for". And like I said, I'll take a Dunkin'Donut doughnut any day.
I don't know what the heck Cosdolce is talking about when he says,
"People walking away like zombies with 4-5 dozen donuts after 30 minute wait. Parking lot jammed with cars. Drove by Anaheim KKD yesterday 11:00 am. Drive thru 6-7 cars deep."
I bought my doughnuts somewhere in Ohio when on a trip. I parked nice and close to the entrance, walked right up to the counter, plenty of selection, and nobody, but nobody buying 4 or 5 dozen. I bought my three doughnuts and left. Both the wife and I agreed. Yeah, it's a pretty good doughnut, but that was about it.
I suppose the people cosadolce saw were all fad chasing, bell bottom wearing, ex-web designers blowing their severence packages before moving back in with their parents.
I just don't get the hype, the doughnuts are not that good.
A word of advice. Enjoy the donuts all you want, but don't buy this stock any time soon.
The individuals that are buying this stock at these prices are those that, like yourself, love the Krispy Kreme donuts and they realize that Krispy Kreme still has a lot of expansion ahead of them. Unfortunately, like you, they don't understand investing fundamentals. However, you are more intelligent than they are. You have realized that you don't understand investing fundamentals and, therefore, have chosen not to invest your money in KKD.
The future growth of the company is already factored into the stock price. In fact, this stock price is so overvalued that this company could expand its store base at 3 times the rate that it intends to expand, and the stock would still be overpriced. The overwhelming majority of the future stores that will be opened will be franchised stores. These stores do not result in much income for KKD. The overwhelming majority of the income generated from these stores goes to the franchisee. KKD's rate of earnings growth is going to drop in the coming years.
Buy the donuts. Skip the stock.