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Say what you want about the tasty warmth of its fresh-from-the-fryers glazed confections, Krispy Kreme Doughnuts (NYSE: KKD) hasn't been leading the sweet life of late. Beleaguered and beaten down in the midst of what CNN Money calls a "sputtering turnaround effort," the company remains challenged with an anemic share price, struggling sales, and folding franchise locations.Today, Chief Executive Daryl Brewster, who took the reins in March 2006, announced plans to retire for personal reasons. Brewster will leave his post at the end of this month. The board quickly named James Morgan, board member since 2000 and chairman of the board since 2005, to take the vacated seat.
In other news, Krispy Kreme has followed the lead of many fast-food concerns to announce that all products sold in the U.S. are now free of trans fats. KKD officials said it has been introducing zero-grams trans fat products across the country during the past several months.
Investors are cheering this combination of news, as the stock has spiked 9.5% in today's trading. Of course, given the stock's current price (around the $3 level), this represents an absolute increase of 27 cents per share.
Beth Gaston Moon is an analyst at Schaeffer's Investment Research.
Reader Comments (Page 1 of 3)
1. no wonder they are struggling they pick and choose who they put the doughnuts in their store they forgot the little guy i dont doubt they have problems
Posted at 5:30PM on Jan 7th 2008 by melanie
2. Who cares about trans fats? Of course they will kill you, but so will any burger from a fast food joint. Why can't Krispy Kreme wake up and realize that they could come up with a whole wheat doughnut dipped in something sugar free? I for one would beat a path to their door. Fat isn't all that makes you fat. Simple carbs make you fatter. Wake up KK.
Posted at 8:12PM on Jan 8th 2008 by Bob
3. KK does have a whole wheat doughnut and it is dipped in pure sugar which is the easiet thing to burn off so eat up in moderation and work out. :)
Posted at 9:34PM on Jan 8th 2008 by lynette
4. Well it's a step in the right direction but uh, it's still a doughnut. http://www.gamefacefitness.com
Posted at 8:32PM on Jan 8th 2008 by Coni
5. Hey Krispy Kreme... Thanks for the zero trans fats it is a GREAT move & so important to our health!!!
Please consider adding some more "healthy" balance to your GREAT donuts... you could add yogurt filled donuts (instead of that heavy sugar icing you call "creme"), and real fruit-filled doughnuts (instead of that gelled goop you call berry filling), and real buttermilk donuts with digestive enzymes, and some special dark chocolate donuts for the ladies, along with specialty cheese filled donuts too (cheeses like asagio, feta, goat cheese)! You could also consider doing veggie & meat filled donuts like Russian piroskies (without the sugar of course)!
Posted at 8:43PM on Jan 8th 2008 by Kay
6. Let's promote our site while we're here huh? Lame.
KK's are okay. I prefer low-fat cinnamon rolls, mmm.
Posted at 8:43PM on Jan 8th 2008 by sarah
7. Well there goes the good taste of Krispy Kreme. Of course you can't eat them every day and expect to live past 60, HOWEVER, once in a while it's a nice treat and I WANT THE DAMN TRANSFAT! *LOL*
Posted at 9:00PM on Jan 8th 2008 by JustinOpinion
8. We should have a choice. I like the donuts the way they are, trans fat and all. I also like greasy fries. Don't eat them often, but why should I be told I HAVE to eat healthy all the time.
Posted at 9:31PM on Jan 8th 2008 by Bette Marks
9. Also forgot to add, I have eaten all the trans fat stuff all my life, and I am 80, and still going strong. KK keep the transfat in your donuts. That's what makes them good.
Posted at 9:34PM on Jan 8th 2008 by Bette Marks
10. I liked what you said and I agree totally with you.
Posted at 11:43PM on Jan 8th 2008 by SadieMae
11. Oh Puleeese! Go eat at the health food store and leave KK to us old folks. LOL
Posted at 9:37PM on Jan 8th 2008 by Bette Marks
12. I'm glad their getting rid of trans fat. I don't buy anything with trans fat in it. However, their box of a dozen donuts is way too expensive. I'm not paying $3.99 for a dozen of those skinny donuts. Besides I've found that carbs and sugar really give you that jelly-belly.
Posted at 10:17PM on Jan 8th 2008 by David
13. I think KK should make a donut w/ half the sugarglaze. Then it would be less fattening would taste as good as original and could be advertized at 1/2 the calories or reduced fat ect...
I love to visit the kk on PioNono Av. In Macon ga
about a mile from my house. Try them when they're HOT off the line UMM UMMMM!
Posted at 10:20PM on Jan 8th 2008 by Raymond Kemp
14. Okay, let's not force a "doughnut shop" to get healthy! They honestly do not need to have a hundred healthy choices. If you're going to KK's, you probably want a melt-in-your mouth warm fat-filled doughnut. Splurge day! Also, who really wants fried whole wheat? They taste all right, but if I'm eating healthy I avoid the doughnuts, and if I'm splurging I like the good ol' fashioned raised ones. BTW, taking transfat out of foods hasn't changed the taste of anything as far as I'm concerned. Ya'll sound like my grandma . . . "Back in the old days we fried everything in bacon grease and baked with lard . . . cookies just aren't the SAME now!"
Posted at 10:23PM on Jan 8th 2008 by Nomer
15. i personally dont care squat about trans fat, and fat free things tend to not taste as good as normal things, and i like krispy kremes already as they are, so they had better not change the plain old original doughnuts.
Posted at 10:23PM on Jan 8th 2008 by tom
16. I absolutely LOVE the Krispy Kreme doughnuts....whenever I can get some, or from wherever, they are ALWAYS a treat and a tasty delight!! And like alot of things, why change something that has always been a good product and a great taste!!
Posted at 10:32PM on Jan 8th 2008 by Bob
17. Because it's a proven FACT that the trans fat from partially hydrogenated vegetable oils do nothing but clog arteries. I hate to even think how much Crisco I ate growing-up.
Posted at 10:43PM on Jan 8th 2008 by David
18. donuts made with Splenda
Posted at 10:33PM on Jan 8th 2008 by hry
19. Splenda isn't healthy for you neither. Stick to the natural products that God made.
Posted at 10:46PM on Jan 8th 2008 by David
20. Gimme a break. This will make not make a bit of difference in the long run. There is no such thing as a "healthy" donut. They can take out the evil trans fat but it's still a big greasy sugary lump of empty calories. A LOT of calories. Fat producing, blood sugar raising carb calories. People who are truly health conscious do not eat donuts and they are not going to start just because they have no trans fat. I can't imagine that this will have any impact at all.
Posted at 10:34PM on Jan 8th 2008 by Jason