Sticking With Krispy Kreme
The reasons for the growing excitement, and willingness to get past that less than stellar quarter, have to do with a few recent announcements that bolster the notion that Krispy Kreme is in growth mode. Two weeks ago, the company trumpeted its entry into the South American markets, with a deal to open 25 stores in Colombia over the next five years. Last week came the announcement of its first outpost into Singapore, with a 15-store franchise deal by 2017.
Clearly, this is not the 2000-era Krispy Kreme, which ultimately came close to crashing and burning. Today's Krispy Kreme is focused on international growth, especially in emerging markets. Some investors are surprised to find out that of the company's 790 total stores, 546 or nearly 70% are outside the U.S. Furthermore, management remains confident that it can grow its international store base to 900 by 2017.
Not that the company is struggling domestically. Last quarter represented the 19th-consecutive quarter of same-store-sales growth for company-owned stores. Krispy Kreme also is continuing attempts to make inroads into the coffee business, announcing a deal to sell its ground coffee in some of Walmart's