Eh, what can we say? It’s a doughnut…
By PAUL NOWELL, AP Business Writer
4 minutes agoCHARLOTTE, N.C. – Most of the blame for the financial woes of snack maker Krispy Kreme Doughnuts Inc. lies with two former executives who tried to “manage earnings” to meet Wall Street’s expectations, according to a report issued Wednesday.
Neither Chief Executive Scott Livengood nor ex-Chief Operating Officer John Tate are still with the once high-flying company. It’s not clear whether their departures, and the recommendation Wednesday from independent directors to restate past earnings downward by $25.6 million, will return the luster to the former Wall Street darling known for its tempting “Hot Now” treats.
Morningstar analyst John Owens called the report a “a small but significant step in restoring investor confidence.” But Owens added the Winston-Salem company must still grapple with double-digit sales declines at its factory stores and financial problems with its franchisees.
Meanwhile, the company faces several lawsuits, including one that alleges workers lost millions of dollars in retirement savings because executives at the company hid evidence of declining sales and profits…
The company’s stock, which traded for $105 in November 2000 before a pair of two-for-one stock splits, closed at $7.30, up 15 cents, or 2.1 percent, Wednesday on the New York Stock Exchange.
Attempts to contact Livengood and Tate on Wednesday were unsuccessful…
The report said the two executives failed “to establish the management tone, environment and controls essential for meeting the company’s responsibilities as a public company.” …
Source
Take a good look – that’s what this corporation is riding on. Up here in the Northeast, Krispy Kreme cannot break through the monster that is Dunkin’ Doughnuts. Why? Quite simply, it’s a doughnut.
Drug fiends of the glutinous persuasion would much rather shop off of a menu full of items than settle for doughnuts every day. And the competition (Dunkin’ Doughnuts) isn’t even in the market for those drug fiends first and foremost. They’re in business for the speed frieks.
Pressure to cook the books to match Wall Street expectations…bleh. It’s a doughnut. Put some meth in the batter, and you’ve got a mainline to both markets at once. Otherwise, while we are obese here in America, we’re at least twice as wired!
