Krispy Kreme worth what?!
I’ve never understood how a donut shop can be worth billions of dollars. In the 2003-2004 timeframe, Krispy Kreme had a market valuation of over $3 Billion dollars! Today, its market cap is about $500M, which is just a bit over 1X sales of $461M for the last twelve months. Sales are declining, the company is losing money and previous management may yet go to jail for rigging financial results. According to the Wall Street Journal, Krispy’s latest turnaround plan is to “try selling ice cream.” Oh, and they plan to grow the number of stores from about 300 to 500 while they are at it. Did I mention they only have $36M of cash in the bank? And $107M of debt on the balance sheet? Hmmmmm… I’m guessing there is a reason that Cold Stone Creamery and Baskin Robbins are NOT publicly traded companies. – chris