Aggie87 Posted May 7, 2004 Report Posted May 7, 2004 (edited) Chain operator says low-carb craze eats into demand, sees 2005 profit 10% below forecasts. NEW YORK (CNN/Money) - It seems the long-standing relationship between diets and doughnuts may be coming to an end. Krispy Kreme Doughnuts Inc. said Friday its first-quarter profit will come in below Wall Street's estimates and its 2005 profit will be 10 percent lower than previously estimated as consumer interest in low-carbohydrate diets hurts demand for doughnuts. "This [low-carb] phenomenon has affected us most heavily in our off-premises sales channels, in particular sales of packaged doughnuts to grocery store customers," company CEO Scott Livengood said in a statement. For the just-ended fiscal first quarter, the Winston-Salem, N.C.-based company said it now estimates earnings from continuing operations, excluding asset impairment charges, of about 23 cents per share. Analysts, on average, had been looking for 27 cents on that basis, according to First Call. For 2005, the company now expects to earn between $1.04 and $1.06 a share. Wall Street had expected a profit of $1.17, according to First Call. In addition, Krispy Kreme said it will dispose of its Montana Mills bread unit, close six factory stores and shut three underperforming coffee-and-doughnut shops. The company said it will take charges of up to $48 million in the first quarter and restate prior and past financial results to reflect Montana Mills as a discontinued operation. Shares of Krispy Kreme (KKD: Research, Estimates) closed at $31.80 Thursday. ****************************************** I never knew there was a "long-standing" relationship between donuts and diets!!! Either way, this might be a headline worthy of the Jay Leno show... Edited May 7, 2004 by Aggie87 Quote
sheldonm Posted May 7, 2004 Report Posted May 7, 2004 It seems the long-standing relationship between diets and doughnuts may be coming to an end. Quote
Stefan Wood Posted May 7, 2004 Report Posted May 7, 2004 I never understood the popularity of Krispy Kremes. They are just bad and cheaply made doughnuts. Even Dunkin Donuts are superior. In DC there used to be a chain called Montgomery Donuts -- still around in a couple of spots, I think -- and they are the real deal. Quote
Rooster_Ties Posted May 7, 2004 Report Posted May 7, 2004 Time to develop a low-cal, zero-carb, non-fat doughnut. Quote
PHILLYQ Posted May 7, 2004 Report Posted May 7, 2004 Time to develop a low-cal, zero-carb, non-fat doughnut. Taste optional. Quote
catesta Posted May 7, 2004 Report Posted May 7, 2004 I never understood the popularity of Krispy Kremes. They are just bad and cheaply made doughnuts. Even Dunkin Donuts are superior. I agree. Quote
JohnS Posted May 7, 2004 Report Posted May 7, 2004 Krispy Kremes must be better than the average soft, soggy British donut. Quote
Noj Posted May 7, 2004 Report Posted May 7, 2004 Krispy Kremes use WAY too much sugar. They're gross. Quote
Dan Gould Posted May 7, 2004 Report Posted May 7, 2004 They're like big airy bags of sugar and grease. Actually, I do prefer Dunkin' but don't you guys know how huge Krispy Kreme is? The growth of that company and the profit margins of franchisors is astounding. Quote
Free For All Posted May 7, 2004 Report Posted May 7, 2004 They're really only good when they're fresh and warm. After that they harden into little arterial bullets. I see them in grocery stores all the time- by that point they are past their prime and have entered the realm of "just another lame doughnut". But when they're fresh......mmmmm..(I'm thinking about jazzshrink's avatar) I've pretty much given up on doughnuts- the damage outweighs the pleasure for me. Same thing with Ben and Jerry's and those other high fat ice creams. Just can't rationalize it anymore. Quote
Aggie87 Posted May 7, 2004 Author Report Posted May 7, 2004 Personally I think they're successful because of their stores, not necessarily their donuts. My kids have fun going in there and seeing the donuts being made. It's kind of like going to those car washes where you can observe your car going through the cleaning process, watching it move down the conveyor. Of course the fact that they offer you a free sample doesn't hurt, nor does the freebie paper hats for the kids. Quote
Jazzmoose Posted May 7, 2004 Report Posted May 7, 2004 Screw the carbs, there's enough sugar and fat in those things to ruin my week! I'll never understand this obsession with carbs, though. Someday, psuedoscience will discover the "calorie" and the fact that there is no magic way to eat an entire grocery store in one sitting and lose weight... Quote
Dan Gould Posted May 7, 2004 Report Posted May 7, 2004 Of course the fact that they offer you a free sample doesn't hurt Isn't this the first lesson in Marketing Crack 101? They know how to get you hooked! Quote
Man with the Golden Arm Posted May 7, 2004 Report Posted May 7, 2004 just about the same. they opened a Krispy Kreme up here a few months back and my mother-in-law went for some free samples ... mini donuts they were... and brought them to our house when she was to baby sit. a couple hours later the wife and i get a call at the restaurant from our eight year old, who has never had a real donut in her life, all wigged out with fluttering heart beats and a bad stomach. she had eaten about three of them babies in a row cause they were soooo goood. luckily it all passed and she was calmed by mom's encouraging guidance to breath right on through those donut tremens. man she was sugar buzzed to the maxx and has luckily sworn off even going near any type of donut emporium from here on out! Quote
JSngry Posted May 7, 2004 Report Posted May 7, 2004 It's the glaze. Fresh and warm, Krispy Kremes are as good as it gets, proof that light and airy can be more lethal that heavy and hard. They are the Lester Young of donuts. Quote
Man with the Golden Arm Posted May 7, 2004 Report Posted May 7, 2004 They are the Lester Young of donuts. Oh man you just glazed my cruller! (as they say) Quote
Guest ariceffron Posted May 7, 2004 Report Posted May 7, 2004 MY DREAM IS TO GO BEHIND THE COUNTER AND EAT THE DOUGHNUTS THE SECOND AFTER THEY COME OUT OF THE GLAZING PART OF THE CONVEYER BELT, BUT BEFORE THEY GO INTO THE DRYING PART. I WANT TO EAT THEM RIGHT OFF THE BELT UNTIL I CANT EAT ANY MORE. Quote
Guest ariceffron Posted May 7, 2004 Report Posted May 7, 2004 IF I EVER DID THIS WOULD THEY CALL THE POLICE OR WOULD THEY JUST KICK ME OUT Quote
Rooster_Ties Posted May 7, 2004 Report Posted May 7, 2004 Truth in advertising laws, run amok!! Quote
catesta Posted May 7, 2004 Report Posted May 7, 2004 RT, I've got friends that own a large carnival company, they tell me those concessions are a gold mine. They also sell fried Twinkees, Snickers, Milky Way, and just about anything else sweet and fried. I can't take much more than one bite. Quote
AfricaBrass Posted May 7, 2004 Report Posted May 7, 2004 MY DREAM IS TO GO BEHIND THE COUNTER AND EAT THE DOUGHNUTS THE SECOND AFTER THEY COME OUT OF THE GLAZING PART OF THE CONVEYER BELT, BUT BEFORE THEY GO INTO THE DRYING PART. I WANT TO EAT THEM RIGHT OFF THE BELT UNTIL I CANT EAT ANY MORE. That's a GREAT dream! Quote
Jazzmoose Posted May 7, 2004 Report Posted May 7, 2004 Why am I picturing Jazzshrink's avatar everywhere I look??? Quote
connoisseur series500 Posted May 8, 2004 Report Posted May 8, 2004 Crap, I just had some mini-doughnuts this morning before reading this thread. My favorite would be Tim Horton's. I buy them for my bank branches a lot. Sometimes I get so busy at work that my first meal of the day comes in the evening. I did that two days in a row this week. After that, doughnuts look real tasty, I can assure you... Quote
Jazzmoose Posted May 9, 2004 Report Posted May 9, 2004 If I ever make it to Canada again, I've got to check out this "Tim Hortons"...I've heard some of our northern neighbors speak of it like it's a holy shrine or something! But someone needs to straighten them out on this bacon thing.... Quote
RainyDay Posted May 9, 2004 Report Posted May 9, 2004 (edited) Colonial doughnuts on Lakeshore in Oakland. Am I the only person who doesn't care for Krispy Kremes? Too light or something. I like my doughnuts to have some substance. Edited May 9, 2004 by RainyDay Quote
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