Say what you want about the tasty warmth of its fresh-from-the-fryers glazed confections, Krispy Kreme Doughnuts (NYSE: KKD) hasn't been leading the sweet life of late. Beleaguered and beaten down in the midst of what CNN Money calls a "sputtering turnaround effort," the company remains challenged with an anemic share price, struggling sales, and folding franchise locations.Today, Chief Executive Daryl Brewster, who took the reins in March 2006, announced plans to retire for personal reasons. Brewster will leave his post at the end of this month. The board quickly named James Morgan, board member since 2000 and chairman of the board since 2005, to take the vacated seat.
In other news, Krispy Kreme has followed the lead of many fast-food concerns to announce that all products sold in the U.S. are now free of trans fats. KKD officials said it has been introducing zero-grams trans fat products across the country during the past several months.
Investors are cheering this combination of news, as the stock has spiked 9.5% in today's trading. Of course, given the stock's current price (around the $3 level), this represents an absolute increase of 27 cents per share.
Beth Gaston Moon is an analyst at Schaeffer's Investment Research.
Facebook's IPO Debacle, Day 3: Un-Friended and Dis-Liked on Wall…
Former Olympic Rower Turned to Minimalism to Pay Down $82,000 in Debt


Reader Comments (Page 3 of 3)
1-09-2008 @ 1:45AM
Ebony said...
You're right, they over did it with distribution, and also I think people were kinda tired of their doughnuts too. When you over sale something people will get tired of it.
1-09-2008 @ 2:24AM
momat29 said...
Oh Pleese, do not chage the Kripy creeme recipe.
Ther are still some of s (ignorannt fools) that still love the white stuff in the middele.
You can offer a more healthier donought, for the folks that want a skinnier donought. But for the rest of us, we really want that hot glazed donought.
And most of us do not engourge ourselves every day.
It would be like a Tasy cake without the toppings, or pie filling!
1-09-2008 @ 6:56PM
melessa said...
this is such bullshit. i eat greasy, fatty, carbfilled, sugarful, buttery things, and thats the way i like it. people still tell me im too skinny and too eat more. its really unfair im not going to be able to eat KKs anymore because mostly all healthy type foods suck, especially when youve already had the real deal. KK is stupid and they believe their thinking about the customer, but their not. You can put out your healthy crap, and also leave the regular fatty goodness. BUT NO. i dont get to enjoy the donut anymore because americas a bunch of fatasses who eats 50 donuts in one sittings. Why does my shit have to change because of them??
1-09-2008 @ 2:48AM
E wulf said...
at best kk doenuts are crap, most stores with a bakery do a better job.bought them once a very long time ago. and never again.
1-09-2008 @ 6:32AM
grange said...
Oh For Gods sake!!I swear,the time is now to open a breakfast stop that uses lard in their donuts and real full fat cream in their coffee.Dunkin Donuts did the fat switch and their donuts SUCK!If you are eating donuts for your health it is obvious you have lost your mind.Food police.What a freakin joke
1-09-2008 @ 11:18AM
Richard E. Anderson said...
I don't think that "trans fats" is the sole source of KK's problems. If I rembember correctly, the CEO that is leaving made the statement that he was going to visit every KK location for a personal insite as to what was going on.
Here in Roanoke ,VA the front street sign has been missing the word "Krispy" out of the sign for a period of "Two years", and delivery vehicles decals are practically un-readable.
It appears to me that the company needs to get back to basics and make it appealing to buy their product.
I worked for KK for approx 35 years and never saw the company in such degrading state.
1-17-2008 @ 11:55AM
Kira said...
has anyone besides me noticed? since this "non-trans fat" thing,
everything now tastes like it has been SOAKED overnight in SOPPING
GREASE? I can barely STAND to go to the fast food burger joints
anymore- and maybe that was the whole point? The fries taste like
100% cooking oil NOT like potatoes one bit. And now they are ruining
my donuts...
Don't get me wrong. I am not overweight and I am not a gluton.. but it seems they are now trying to over-compensate by soaking everything in 5 times the oil, whether it be "better" oil or not, it is now like we all might as well DRINK a bottle of it cause the food no longer even has the taste of what it is supposed to BE