Krispy Kreme Case Analysis

The Krispy Kreme Doughnuts case study solution solves the case on

financial statement analysis. The structure of the solution is outlined

below and answers the questions included in the outline.

Krispy Kreme Doughnuts, Inc. Background

Corporate Profile

Company Stores

Domestic Franchise

International Franchise

Supply Chain Business Segment

Problem Statement

What is the Problem?

How do you know it is a Problem?

Common Case Study Questions

#1 Who is the decision maker, and what are their responsibilities?

#2 What is the issue and its significance?

#3 Why has this issue risen and why is the decision maker involved?

Analysis of the Case

#1 Identify the issues

#2 Analyze the case data

#3 Generate Alternative Solutions

#4 Select Decision Criteria

#5 Apply Decision Criteria and Analyze Alternatives

#6 Select and Implement Plan

Analysis of Case Data in Exhibits

Exhibit 1 – Income Statements

Exhibit 2 – Balance Sheets

Exhibit 3 – Store Growth

Exhibit 4 – Analysts' Recommendations

Exhibit 5 – Consensus EPS Estimates

Exhibit 6 – Stock Price Patterns Relative to the S&P 500

Exhibit 7 – Analytical Financial Ratios for Krispy Kreme

Exhibit 8 – Analytical Financial Ratios for Quick Service Restaurants

Exhibit 9 – Common Sized Financial Statements

Case Specific Questions

1. What can the historical income statements (case Exhibit 1) and balance sheets (case Exhibit 2) tell you about the financial health

and current condition of Krispy Kreme Doughnuts, Inc.? (Briefly consider the structure and relationship