Business Case Studies & Business Publications

Krispy Kreme Doughnuts, Inc.

Bruner, Robert F.,...

Case

Krispy Kreme Doughnuts, Inc.

Bruner, Robert F.; Carr, Sean

F-1479 | Published November 14, 2005 | 16 pages Case

Collection: Darden School of Business

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This case considers the sudden and very large drop in the market value of equity for Krispy Kreme Doughnuts, Inc., associated with a series of announcements in 2004. These announcements caused investors to revise their expectations about the future growth of Krispy Kreme, which had been one of the most rapidly growing American corporations in the new millennium. This case is intended to be introductory: it can provide a first exercise in financial statement analysis and lay the foundation for two important financial themes, the concept of financial "health" and the financial-economic definition of "value" and its determinants.

• evaluate the implications of the announcements • assess the financial health of the company