Overview Krispy Kreme Doughnuts, Inc. We believe the following represent significant growth opportunities for our Company: Domestic store development. Our comprehensive site selection process focuses on: High volume traffic; High household density; Proximity to both daytime employment and residential centers; and Proximity to other retail traffic generators. Connect with Krispy Kreme at. It has three sources of revenue.
What can the historical income statements case Exhibit 1 and balance sheets case Exhibit 2 tell you about the financial health and current condition of Krispy Kreme Doughnuts, Inc. These sales channels improve the visibility of our brand, increase the convenience of purchase and capture sales from a wide variety of settings and occasions. Fundraising sales are high volume sales to local charitable organizations at discounted prices. What this means is that Krispy Kreme has gotten better every year at turning each sale dollar into net income. In order to avoid this from happening, Krispy Kreme needs to start and diversify their products and provide consumers with products other than donuts, such as sandwiches, cocktails and such. Ratios valuation of Krispy Kreme Doughnuts Inc.
We intend to audit this compliance regularly. The main cause of the recent share price decline is when the financial scandals became public. These accounts are not material to our overall business. What could be more perfect than a Krispy Kreme doughnut? Although we are not aware of anyone else using Krispy Kreme or Hot Doughnuts Now as a trademark or service mark, we are aware that some businesses are using Krispy or a phonetic equivalent, such as Crispie Creme, as part of a trademark or service mark associated with retail doughnut stores. Introduction The purpose of this essay is to perform financial statement analysis on Amazon. Manufacturing our equipment results in several advantages, including: - Flexibility. Information related to the markets, ownership interests, manager allocations and loan and lease guarantees as of August 1, 2004 for joint ventures which are accounted for by the equity method is summarized as follows: 19 Mexico Ciudad Juarez Manager Allocation 2 2 1 The amount shown as Total Stores to be Developed represents the number of stores in the initial development agreement with the joint venture as well as commissary locations which have been opened.
We anticipate spending up to 24 months refining and expanding the Montana Mills concept, retaining its core best-in-class breads, but expanding the offering to include bread-based meals and appropriate accompaniments in an inviting setting. Overall, we believe that Krispy Kreme is moderately financially healthy as of the year end 2004. We anticipate introducing the remaining components of the new beverage program, including frozen beverages in the next six months and espresso in most stores over the next twelve to eighteen months. In addition to their taste, quality and simplicity, our doughnuts are an affordable indulgence. We manufacture proprietary doughnut-making equipment, which our franchisees are required to purchase. Report of Independent Auditors 24 Schedules not listed above have been omitted because they are not applicable or are not required or the information required to be set forth therein is included in the Consolidated Financial Statements or notes thereto.
The information required by this item is incorporated herein by reference to the section entitled Managements Discussion and Analysis of Financial Condition and Results of Operations - Quantitative and Qualitative Disclosures about Market Risks in the Companys fiscal 2004 Annual Report to Shareholders. Krispy Kreme will offer the tea drinking British with its own custom brews of coffee. There is an industry trend moving towards expanded fresh product offerings during morning and evening drive times, and products are either sourced from a central commissary or brought in by local bakeries. Of the 24 factory stores operated by consolidated joint ventures as of February 1, 2004, we owned the land and building for 8 stores. Vernon Rudolph started Krispy Kreme in 1933 when he bought a doughnut shop from Joe LeBeau.
We believe that Krispy Kreme has significant opportunities for continued growth. Excluding the effects of changes in foreign exchange rates, International Franchise stores sales rose 2. These stores also offer a wide variety of coffees and other beverages. This group generally concentrates on growing sales within the current base of stores rather than developing new stores or new territories. In addition, we also believe that we compete effectively in convenience stores.
The Plan held 149,377 and 101,281 shares of Krispy Kreme Doughnuts, Inc. Additionally, the ability to generate sales outside of our stores, utilizing the stores existing production capacity, minimizes the risk of an underperforming on-premises sales location. We compete primarily with -13- other well-known producers of baked goods, such as Hostess, Dolly Madison and Entenmanns, and some regional brands. As is the case for other food producers, numerous other government regulations apply to our products. Once glazed, customers can have the same hot doughnut experience in a doughnut and coffee shop as in a factory store.
We have established Krispy Kreme as a leading consumer brand with a loyal customer base through our longstanding commitment to quality and consistency. Therefore, these transactions qualify as party-in-interest transactions. The primary raw materials used in our products are flour, sugar, shortening and coffee beans. Although our marketing strategy has not historically employed traditional advertising, we will occasionally utilize live radio and direct mail to generate awareness and trial usage of our products. We continue to develop the capabilities and infrastructure necessary to support markets outside the United States.
We have also entered into joint ventures to develop the markets in Australia and New Zealand, the United Kingdom and the Republic of Ireland, and Mexico. Their accounts payable turnover is also high relative to Satrbucks but this is probably a direct outcome of their franchise model. They employ about 800 people in the United States. Suppliers which breach these obligations will face appropriate actions which could include termination of contracts. Borrowings under the revolving line of credit are generally used to fund store construction.