Krispy Kreme Profit Drops, Stock Hammered - company has blamed the low-carb craze as a problem for its business.

"a" wrote in message
...
Sounds like it is almost time to buy some Krispy Kreme stocks. They'll
recover, no doubt about it, it may take time, but I am sure they will.

Maybe not yet. There is thought to be a problem with it's accounting
that some investors don't really like. They seem to like to use "special
purpose entities" to make it look like they have a lot more assets than they
really do. Perhaps that is starting to catch up with them at the same time
as lo-carb which may compound the cash flow problem. Check the links below.
http://www.forbes.com/2002/02/12/0212krispy.html
http://biz.yahoo.com/pz/040702/60265.html

Tom
210/180/180



"Ken Kubos" wrote in message
...
Krispy Kreme Profit Drops, Stock Hammered

1 hour, 32 minutes ago Add Business - Reuters


By Ellis Mnyandu

NEW YORK (Reuters) - Krispy Kreme Doughnuts Inc. (NYSE:KKD - news) on
Thursday reported a sharp drop in quarterly profit and signaled that
business may not recover any time soon, sending its shares down more
than
17
percent in pre-market trading.

The company, whose business is being assailed partly by the growing
popularity of low-carbohydrate diets, said it has decided to cut new
store
openings for this year and would not offer any projections on
third-quarter
or fiscal 2005 results.


The latest profit shortfall, for which there was very little explanation
in
the company's earnings release, marks another sour episode in a string
of
negative developments that have recently cast a shadow on the
Winston-Salem,
North Carolina-based doughnut chain.


Krispy Kreme, which earlier this month saw its chief operating officer
defect for another job elsewhere, said it now expects to open about 75
new
stores, including about 60 factory and 15 satellite stores, systemwide
in
its current fiscal year.


Back in May, it had said it planned 100 new stores this year, about 17
percent fewer than planned initially.


Chief Executive Scott Livengood called the company's latest results
"disappointing," but at the same time sought to reassure investors that
Krispy Kreme was confident about its long-term prospects.


In the near-term, however, the company forecast sales growth to be
slower
than previously planned. It said systemwide sales would likely grow by
about
15 percent during fiscal 2005 and about 10 percent in the second half of
the
year.


In May, the company had forecast systemwide full-year sales growth
between
20 percent and 25 percent. Systemwide sales for the first half of the
year
jumped 19.4 percent.


Skip Carpenter, an analyst at Thomas Weisel Partners, said it appeared
that
Krispy Kreme's business was "in turmoil."


"Obviously the second quarter is exceptionally disappointing and it
looks
like they continue to have difficulties in front of them, but I'd rather
listen to what management has to say given the turmoil that the business
is
in before I have official comment," said Carpenter.


Livengood did not cite a specific reason for the second-quarter
shortfall
in
the company's release, but in the past the company has blamed the
low-carb
craze as a problem for its business.


Krispy Kreme, which in July said federal investigators were
investigating
its repurchase of franchises, said it earned $5.8 million, or 9 cents
per
share, on a reported basis in its second quarter, compared with $13
million,
or 21 cents per share, a year earlier.


Six analysts on average had expected profit of 22 cents a share, with
estimates ranging from 19 cents to 24 cents a share, according to
Reuters
Estimates.


Total revenue, which includes sales from company stores, franchise
operations and Krispy Kreme Manufacturing and Distribution, climbed 11.5
percent to $177.4 million in the quarter. On a comparable-store basis,
systemwide sales were up 0.1 percent and company store sales rose 0.6
percent, Krispy Kreme said.


The company's stock sagged to $12.65 on INET electronic brokerage
system,
down from its close of $15.36 on the New York Stock Exchange (news - web
sites) on Wednesday. (Additional reporting by Jessica Wohl)
--

Ken

"If this were a dictatorship, it would be a heck of alot easier, as long
as
I'm the dictator."

Bushisms, 2002

"a" wrote in message
...
Sounds like it is almost time to buy some Krispy Kreme stocks. They'll
recover, no doubt about it, it may take time, but I am sure they will.

Maybe not yet. There is thought to be a problem with it's accounting
that some investors don't really like. They seem to like to use "special
purpose entities" to make it look like they have a lot more assets than they
really do. Perhaps that is starting to catch up with them at the same time
as lo-carb which may compound the cash flow problem. Check the links below.
http://www.forbes.com/2002/02/12/0212krispy.html
http://biz.yahoo.com/pz/040702/60265.html

Tom
210/180/180



"Ken Kubos" wrote in message
...
Krispy Kreme Profit Drops, Stock Hammered

1 hour, 32 minutes ago Add Business - Reuters


By Ellis Mnyandu

NEW YORK (Reuters) - Krispy Kreme Doughnuts Inc. (NYSE:KKD - news) on
Thursday reported a sharp drop in quarterly profit and signaled that
business may not recover any time soon, sending its shares down more
than
17
percent in pre-market trading.

The company, whose business is being assailed partly by the growing
popularity of low-carbohydrate diets, said it has decided to cut new
store
openings for this year and would not offer any projections on
third-quarter
or fiscal 2005 results.


The latest profit shortfall, for which there was very little explanation
in
the company's earnings release, marks another sour episode in a string
of
negative developments that have recently cast a shadow on the
Winston-Salem,
North Carolina-based doughnut chain.


Krispy Kreme, which earlier this month saw its chief operating officer
defect for another job elsewhere, said it now expects to open about 75
new
stores, including about 60 factory and 15 satellite stores, systemwide
in
its current fiscal year.


Back in May, it had said it planned 100 new stores this year, about 17
percent fewer than planned initially.


Chief Executive Scott Livengood called the company's latest results
"disappointing," but at the same time sought to reassure investors that
Krispy Kreme was confident about its long-term prospects.


In the near-term, however, the company forecast sales growth to be
slower
than previously planned. It said systemwide sales would likely grow by
about
15 percent during fiscal 2005 and about 10 percent in the second half of
the
year.


In May, the company had forecast systemwide full-year sales growth
between
20 percent and 25 percent. Systemwide sales for the first half of the
year
jumped 19.4 percent.


Skip Carpenter, an analyst at Thomas Weisel Partners, said it appeared
that
Krispy Kreme's business was "in turmoil."


"Obviously the second quarter is exceptionally disappointing and it
looks
like they continue to have difficulties in front of them, but I'd rather
listen to what management has to say given the turmoil that the business
is
in before I have official comment," said Carpenter.


Livengood did not cite a specific reason for the second-quarter
shortfall
in
the company's release, but in the past the company has blamed the
low-carb
craze as a problem for its business.


Krispy Kreme, which in July said federal investigators were
investigating
its repurchase of franchises, said it earned $5.8 million, or 9 cents
per
share, on a reported basis in its second quarter, compared with $13
million,
or 21 cents per share, a year earlier.


Six analysts on average had expected profit of 22 cents a share, with
estimates ranging from 19 cents to 24 cents a share, according to
Reuters
Estimates.


Total revenue, which includes sales from company stores, franchise
operations and Krispy Kreme Manufacturing and Distribution, climbed 11.5
percent to $177.4 million in the quarter. On a comparable-store basis,
systemwide sales were up 0.1 percent and company store sales rose 0.6
percent, Krispy Kreme said.


The company's stock sagged to $12.65 on INET electronic brokerage
system,
down from its close of $15.36 on the New York Stock Exchange (news - web
sites) on Wednesday. (Additional reporting by Jessica Wohl)
--

Ken

"If this were a dictatorship, it would be a heck of alot easier, as long
as
I'm the dictator."

Bushisms, 2002

"a" wrote in message
...
Sounds like it is almost time to buy some Krispy Kreme stocks. They'll
recover, no doubt about it, it may take time, but I am sure they will.

Maybe not yet. There is thought to be a problem with it's accounting
that some investors don't really like. They seem to like to use "special
purpose entities" to make it look like they have a lot more assets than they
really do. Perhaps that is starting to catch up with them at the same time
as lo-carb which may compound the cash flow problem. Check the links below.
http://www.forbes.com/2002/02/12/0212krispy.html
http://biz.yahoo.com/pz/040702/60265.html

Tom
210/180/180



"Ken Kubos" wrote in message
...
Krispy Kreme Profit Drops, Stock Hammered

1 hour, 32 minutes ago Add Business - Reuters


By Ellis Mnyandu

NEW YORK (Reuters) - Krispy Kreme Doughnuts Inc. (NYSE:KKD - news) on
Thursday reported a sharp drop in quarterly profit and signaled that
business may not recover any time soon, sending its shares down more
than
17
percent in pre-market trading.

The company, whose business is being assailed partly by the growing
popularity of low-carbohydrate diets, said it has decided to cut new
store
openings for this year and would not offer any projections on
third-quarter
or fiscal 2005 results.


The latest profit shortfall, for which there was very little explanation
in
the company's earnings release, marks another sour episode in a string
of
negative developments that have recently cast a shadow on the
Winston-Salem,
North Carolina-based doughnut chain.


Krispy Kreme, which earlier this month saw its chief operating officer
defect for another job elsewhere, said it now expects to open about 75
new
stores, including about 60 factory and 15 satellite stores, systemwide
in
its current fiscal year.


Back in May, it had said it planned 100 new stores this year, about 17
percent fewer than planned initially.


Chief Executive Scott Livengood called the company's latest results
"disappointing," but at the same time sought to reassure investors that
Krispy Kreme was confident about its long-term prospects.


In the near-term, however, the company forecast sales growth to be
slower
than previously planned. It said systemwide sales would likely grow by
about
15 percent during fiscal 2005 and about 10 percent in the second half of
the
year.


In May, the company had forecast systemwide full-year sales growth
between
20 percent and 25 percent. Systemwide sales for the first half of the
year
jumped 19.4 percent.


Skip Carpenter, an analyst at Thomas Weisel Partners, said it appeared
that
Krispy Kreme's business was "in turmoil."


"Obviously the second quarter is exceptionally disappointing and it
looks
like they continue to have difficulties in front of them, but I'd rather
listen to what management has to say given the turmoil that the business
is
in before I have official comment," said Carpenter.


Livengood did not cite a specific reason for the second-quarter
shortfall
in
the company's release, but in the past the company has blamed the
low-carb
craze as a problem for its business.


Krispy Kreme, which in July said federal investigators were
investigating
its repurchase of franchises, said it earned $5.8 million, or 9 cents
per
share, on a reported basis in its second quarter, compared with $13
million,
or 21 cents per share, a year earlier.


Six analysts on average had expected profit of 22 cents a share, with
estimates ranging from 19 cents to 24 cents a share, according to
Reuters
Estimates.


Total revenue, which includes sales from company stores, franchise
operations and Krispy Kreme Manufacturing and Distribution, climbed 11.5
percent to $177.4 million in the quarter. On a comparable-store basis,
systemwide sales were up 0.1 percent and company store sales rose 0.6
percent, Krispy Kreme said.


The company's stock sagged to $12.65 on INET electronic brokerage
system,
down from its close of $15.36 on the New York Stock Exchange (news - web
sites) on Wednesday. (Additional reporting by Jessica Wohl)
--

Ken

"If this were a dictatorship, it would be a heck of alot easier, as long
as
I'm the dictator."

Bushisms, 2002

The company, whose business is being assailed partly by the growing
popularity of low-carbohydrate diets,

Boo hoo... they mean donuts are appropriate for other types of diets? Like
low-fat?

The company, whose business is being assailed partly by the growing
popularity of low-carbohydrate diets,

Boo hoo... they mean donuts are appropriate for other types of diets? Like
low-fat?

The company, whose business is being assailed partly by the growing
popularity of low-carbohydrate diets,

Boo hoo... they mean donuts are appropriate for other types of diets? Like
low-fat?

I don't mind seeing them go. I got tired of them after a few tries. they are
only a block away and I get tired of the smells.

--
Knight-Toolworks & Custom Planes
Custom made wooden planes at reasonable prices
See http://www.knight-toolworks.com For prices and ordering instructions.

I don't mind seeing them go. I got tired of them after a few tries. they are
only a block away and I get tired of the smells.

--
Knight-Toolworks & Custom Planes
Custom made wooden planes at reasonable prices
See http://www.knight-toolworks.com For prices and ordering instructions.