Krispy Kreme Doughnuts, Inc. (KKD) Message Board

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Non-Tech : Krispy Kreme Doughnuts, Inc. (KKD)

KKD 21.00

0.0%

Aug 4 5:00 PM EST

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To: Bear Down who wrote (162)	4/15/2000 9:53:00 PM
From: Bobbie Boucher	Read Replies (1) of 1001

Do you really think that a business model based on cholesterol is going to continue to work in a time that health is a major issue. In the company filings they state.. "Our results of operations could also be affected by changing consumer tastes -- for instance, if prevailing health or dietary preferences cause consumers to avoid doughnuts in favor of foods that are perceived as more healthy." Think about that. I know I don't eat doughnuts any more. The sickly revenue stream that has hung over them over the last five years is a tell tale sign of the direction of this fragile business They say they opened their first store in 1937. But the company that did the IPO has only been around since 1982 Not the same story heard from the people touting this stock. I also so dislike the use of the proceeds of this offering "A distribution to our existing shareholders as part of a corporate reorganization in connection with this offering" In other words these guys are cashing out. Why would I want to own a stock in a company that management is dumping? They are paying off $18.7 million with this offering. This money that they ad to borrow to stay a float over the ast five years. Lastly, The glaze that they feel is their trademark is not owned by them. They are dependent on a sole supplier for glaze flavoring. If this guy shuts them down or raise prices they have no other source. In their own words "any interruption in the distribution from our current supplier could affect our ability to produce our signature Hot Original Glazed." This is a house of cards that has been vacated by previous owners (X-management). Any sensible person that has been sucked into this deal should review the realty of where they are and try to save what is left. Jake

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