# Whats Up With Krispy Kreme? **URL:** \ **Category:** Factual Questions\ **Created:** [February 25, 2005, 3:28pm UTC](https://boards.straightdope.com/t/whats-up-with-krispy-kreme/291887 "2005-02-25T15:28:48Z")\ **Posts on this page:** 9\ **Page:** 1
**Author:** ![ralph124c](https://avatars.discourse-cdn.com/v4/letter/r/8797f3/32.png) [@ralph124c](https://boards.straightdope.com/u/ralph124c)\ **Post date:** [February 25, 2005, 3:28pm UTC](https://boards.straightdope.com/t/whats-up-with-krispy-kreme/291887/1 "2005-02-25T15:28:48Z")
Man, I just checked their stock-from a high of $43/share, the stock has slid to $5.00! How did this company fall from grace so fast?Its rumored that a lot of KK franchises willbe closing upsoon…and a lot of the corporate staff is about to get their “golden parachutes”. A sad time in the doughnut world! But it looks like insiders knew what was happenening…there was a huge wave of insider selling (when the stocjk was around $25.00/share). Could these guys be prosecuted? :smack: ---
**Author:** ![Bewildebeest](https://avatars.discourse-cdn.com/v4/letter/b/779978/32.png) [@Bewildebeest](https://boards.straightdope.com/u/Bewildebeest)\ **Post date:** [February 25, 2005, 3:38pm UTC](https://boards.straightdope.com/t/whats-up-with-krispy-kreme/291887/2 "2005-02-25T15:38:53Z")
[The usual](http://news.yahoo.com/news?tmpl=story&u=/ap/20050224/ap_on_bi_ge/krispy_kreme_investigation) ---
**Author:** ![CapnPitt](https://avatars.discourse-cdn.com/v4/letter/c/edb3f5/32.png) [@CapnPitt](https://boards.straightdope.com/u/CapnPitt)\ **Post date:** [February 25, 2005, 3:41pm UTC](https://boards.straightdope.com/t/whats-up-with-krispy-kreme/291887/3 "2005-02-25T15:41:41Z")
> [@ralph124c](#): > > How did this company fall from grace so fast? From the Jan. 5, 2005 article “Investors left in a glaze with Krispy Kreme restatement” in the Chicago Tribune, it looks like there was a significant accounting error followed by an October SEC investigation. From the Jan. 19, 2005 Wall Street Journal article “Once-Hot Krispy Kreme Ousts Its CEO Amid Accounting Woes” a new executive blames the financial problems on “revenue shortfalls and on “explosive growth” that had outstripped the company’s support structures.” In WAG territory, I heard that the Atkins diet damaged their sales last year too. ---
**Author:** ![lektrikpuke](https://avatars.discourse-cdn.com/v4/letter/l/47e85d/32.png) [@lektrikpuke](https://boards.straightdope.com/u/lektrikpuke)\ **Post date:** [February 25, 2005, 4:25pm UTC](https://boards.straightdope.com/t/whats-up-with-krispy-kreme/291887/4 "2005-02-25T16:25:00Z")
IMO it was just a fad, and fads end up in yardsales eventually (remember bellbottom pants?). I mean, a doughnut’s a doughnut. As for the OP, sure they can be prosecuted. Proving insider trading is tough, though. ---
**Author:** ![Liberal](https://avatars.discourse-cdn.com/v4/letter/l/848f3c/32.png) [@Liberal](https://boards.straightdope.com/u/Liberal)\ **Post date:** [February 25, 2005, 4:46pm UTC](https://boards.straightdope.com/t/whats-up-with-krispy-kreme/291887/5 "2005-02-25T16:46:33Z")
> [@lektrikpuke](#): > > mean, a doughnut’s a doughnut. Not so! You can make an amazing gallimaufry of donuts, from light yeasty glazed wonders to heavy, choking cakes. There’s an almost endless variety all over the world. > **[Doughnut](https://en.wikipedia.org/wiki/Donuts)** > > A doughnut or donut (IPA: /doʊnət/) is a type of leavened fried dough.: 275  It is popular in many countries and is prepared in various forms as a sweet snack that can be homemade or purchased in bakeries, supermarkets, food stalls, and franchised specialty vendors. Doughnut is the traditional spelling, while donut is the simplified version; the terms are often used interchangeably. > Doughnuts are usually deep fried from a flour dough, but other types of batters can also be used. Various toppi... Plus, their topology is interesting. 🙂 ---
**Author:** ![occ](https://avatars.discourse-cdn.com/v4/letter/o/8c91f0/32.png) [@occ](https://boards.straightdope.com/u/occ)\ **Post date:** [February 25, 2005, 4:56pm UTC](https://boards.straightdope.com/t/whats-up-with-krispy-kreme/291887/6 "2005-02-25T16:56:02Z")
I’m going to say, disregarding any corporate sleazery, that the two big factors were these: First, yah, it was a fad. Everyone had to try Krispy Kremes because, well, everyone else was trying them. Since Dunkin’ Donuts is so entrenched, and because it serves non-donut items, I suspect that people continued to use it for their daily pick-me-up routines. Second, Atkins. The big growth in Krispy Kreme came right before Atkins/low-carb diets became very popular. If you’re avoiding carbs, a sugar-glazed donut is about the WORST possible food to eat. Combine these two, and thats about all you need to do it. Shame if they close, since I think its one of the best-run chain businesses I’ve been to (in terms of the stores themselves, that is). 'Course, it’s not like I myself ever went there all that often – a sugary donut is an occasional thing. Plus, how many can eat more than one or two of those at a sitting? ---
**Author:** ![AskNott](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/asknott/32/5790_2.png) [@AskNott](https://boards.straightdope.com/u/AskNott)\ **Post date:** [February 25, 2005, 4:56pm UTC](https://boards.straightdope.com/t/whats-up-with-krispy-kreme/291887/7 "2005-02-25T16:56:38Z")
Even before the shady dealings in the Yahoo link, KK was the victim of horrendously bad timing. They had just gone through a huge expansion when the low-carbohydrate Atkins craze hit. They had stores everywhere, and nobody wanted doughnuts. They’d drive past the Krispy Kreme store, and buy a big bag of Fried Pork Rinds. :rolleyes: ---
**Author:** ![CapnPitt](https://avatars.discourse-cdn.com/v4/letter/c/edb3f5/32.png) [@CapnPitt](https://boards.straightdope.com/u/CapnPitt)\ **Post date:** [February 25, 2005, 5:10pm UTC](https://boards.straightdope.com/t/whats-up-with-krispy-kreme/291887/8 "2005-02-25T17:10:56Z")
> [@occ](#): > > First, yah, it was a fad. The expansion of the chain caused fad behavior in the new markets, but Krispy Kreme’s been around the south forever. But the faddishness in the new markets made for the pump and crash. (Just like the sugar highs) > [@occ](#): > > Plus, how many can eat more than one or two of those at a sitting? I’ve been known to eat more than a few. 😉 ---
**Author:** ![Tastes\_of\_Chocolate](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/tastes_of_chocolate/32/3232_2.png) [@Tastes\_of\_Chocolate](https://boards.straightdope.com/u/Tastes_of_Chocolate)\ **Post date:** [February 25, 2005, 9:17pm UTC](https://boards.straightdope.com/t/whats-up-with-krispy-kreme/291887/9 "2005-02-25T21:17:27Z")
[Motley Fool Article](http://www.fool.com/news/commentary/2004/commentary04092002.htm) Sorry, but I believe this link requires a registration. But in short… > [@](#): > > What is Krispy Kreme? > There have been thousands of Monday morning quarterbacks who have offered opinions both learned and ignorant as to the seeds of the troubles at Krispy Kreme: The company got greedy and grew too fast, it diluted its brand by putting Krispy Kreme doughnuts in places like grocery stores and gas stations, it is a fad. High oil prices, low-carb craze – all have contributed to the downfall of Krispy Kreme. > > Now take a pen and mark through all of them except for “the company got greedy and grew too fast.” The rest of the items are excuses and misunderstanding, not reasons. Krispy Kreme went into a program of very fast expansion. When it became obvious that some of those franchises were not performing stellarly, Krispy Kreme bailed them out, rather then letting them sink. Bailed them out to the tune of $32mill.