Krispy Kreme

INITIAL COMPANY PROFILE

ABOUT:

Krispy Kreme Doughnuts Incorporation is a leading branded specialty retailer and wholesaler of
premium quality sweet treats and complementary products, including its signature Original
Glazed doughnut. Headquartered in Winston-Salem, NC, the Company has offered the highest
quality doughnuts and great tasting coffee since it was founded on July 13, 1937 by Vernon
Rudolph. As of today, the world famous original glazed doughnuts are over 85 years old and
have expanded to over 30 countries worldwide, with over 1,400 locations globally.

LINK: https://krispykreme.ca/about-us/history/

CURRENT CEO:

MICHAEL TATTERSFIELD (2017-Present)

Mike Tattersfield became the CEO of Krispy Kreme Doughnuts, Inc. in 2017 following the
departure of Tony Thompson, the company's former CEO. Tattersfield joined the company in
2016 and held the position as president and CEO since January 2017. The Board of Directors
includes executives from various industries such as finance, retail and consumer goods.
Mr. Tattersfield holds an MBA from Harvard and a B.S. in Accounting from Indiana University.

BOARD OF DIRECTORS
Olivier Goudet (Managing Partner &. Chief Executive Officer, JAB)
Marissa Andrada (Former Chief Diversity, Inclusion and People Officer, Chipotle Mexican Grill)
David Bell (Senior Partner, JAB)
David Deno (Chief Executive Officer, Bloomin’ Brands, Inc.)
Paul Michaels (Former Chief Executive Officer, Mars Inc.)
Krispy Kreme

Gerhard Pleuhs (Former Executive Vice President & General Counsel, Mondelez International,
Inc. (MDLZ))
Debbie Roberts (Executive Vice President & Chief Operating Officer, Panera Bread)
Lubomira Rochet (Partner, JAB)
Philip Telfer (Former Corporate Finance Staff Officer, Mars Asia Pacific)
Michelle Weese (Chief Corporate Affairs Officer, Bristol Myers Squibb)

LINK: https://investors.krispykreme.com/corporate-governance/board-of-directors

EVOLUTION OF LOGO:

Krispy Kreme is impressively conservative with its visual identity design. The famous doughnut
brand uses the logo, introduced in 1937, with only slight modifications, made in 2017 with the
most recent iteration being a modern take on their classic logo. The iconic red, green and white
color scheme and the image of the hot doughnut remain a constant, with the wordmark being
updated to a modern sans-serif font.

LINK: https://1000logos.net/krispy-kreme-logo/
Krispy Kreme

TIMELINE:

In the 1940s, Krispy Kreme began to franchise their operations, allowing others to open their
own Krispy Kreme stores. This expansion allowed the company to quickly grow and become a
household name in the Southern United States.

In the 1950s, Krispy Kreme introduced the "Hot Doughnuts Now" sign, which would light up
when fresh doughnuts were being made, drawing customers in for a warm, freshly-made treat.
In 2019, Krispy Kreme was recognized by Nation's Restaurant News as the "Hot Concept" award
winner.

LINK:
https://www.fineawards.com/custom-crystal-awards-gallery/2674-krispy-kreme-hot-lights-aw
ards

(2) The issue of inconsistent doughnuts across the stores, the company built a "mix plant" paired
with a distribution system so that each doughnut shop would be working with the same dry
dough mix.
The team kept innovating as they spent the 1950s focused on developing company-specific
equipment that would further streamline the process.

LINK: https://krispykreme.ca/about-us/history/

In 2000, the company went public for the first time. But in 2016, it went private again when it
changed hands. Thereafter, the chain officially filed to go public again after Krispy Kreme filed
for the IPO with the Securities and Exchange Commission. The company said in its filing that it
would trade on the Nasdaq again, this time under the ticker DONUT.

LINK:
https://www.businessinsider.com/krispy-kreme-public-ipo-s1-jab-holdings-dnut-2021-6?_gl=1
*w8enjq*_ga*NzU4OTc5OTcyLjE2NzY4MDYwMTQ.*_ga_E21CV80ZCZ*MTY3NjgwNjAxNC4
xLjEuMTY3NjgwNjUyMy4wLjAuMA..
Krispy Kreme

In 2017, Tattersfield's appointment signaled a new direction for Krispy Kreme, with a focus on
improving operational efficiency and delivering sustainable growth for the company following
the departure of Tony Thompson, the company's former CEO.

Digital Innovation: Tattersfield has also focused on leveraging technology to improve the
customer experience. In 2019, the company launched a new mobile app that allows customers
to order ahead and earn rewards. The app has been successful, with mobile orders accounting
for over 10% of total sales.

Krispy Kreme’s e-commerce capability remains a critical talking point. In the first half of the
year, 19 percent of the company’s global retail sales stemmed from e-commerce. Domestically,
82 percent of e-commerce delivery transactions were incremental to sales in 2020.

LINK:
https://qsrmedia.com.au/technology/in-focus/krispy-kreme-taps-digital-space-sees-great-resul
ts

New Menu Items: Krispy Kreme has introduced new menu items to attract customers and
increase sales. In addition to the doughnut sandwiches, mini doughnuts, doughnut bites, and
frozen drinks mentioned earlier, the company has also launched limited-time offers and
collaborations with other brands such as Oreo and Nutella.

LINK: https://www.foodbusinessnews.net/articles/15148-krispy-kreme-launches-mini-donuts

By positioning its treats as occasion-worthy, Krispy Kreme is hoping to differentiate itself from
potential fast-food competitors like Starbucks and, of course, Dunkin Donuts. E-commerce
transaction values have steadily increased as the brand expands offerings into catering, gifting,
and dark kitchen expansion. On December 12 2021 resulted in a 50 percent increase in sales
because of e-commerce promotion as 'Day of Dozen' special.

LINK:
https://www.qsrmagazine.com/news/krispy-kremes-offer-dozen-doughnuts-1-december-12
Krispy Kreme

https://video.foxbusiness.com/v/6261927686001#sp=show-clips

The holes on expanding became apparent as franchisees filed for bankruptcy protection however
the company is again flourishing, nabbing an impressive 18 spot on Entrepreneur's 2017
Franchise 500 list.

LINK: https://www.entrepreneur.com/franchise500

Top Brand that Go Big Without Advertising: Krispy Kreme brand successfully achieved
household-name recognition with no advertising. According to Lewis (2021), despite the
acquisition, the company has no plans to begin advertising and will continue to focus on the
fundamental word-of-mouth strategy, backed by social media. Furthermore, the company
believes customers have an emotional connection with the brand, which may be fueled by Krispy
Kreme's focus on community involvement like fundraisers.

LINK:
https://www.linkedin.com/pulse/viral-branding-10-brands-got-big-without-advertising-kent-le
wis

Krispy Kreme’s critics may be skeptical about consumers' appetite for sugary doughnuts in a
more health-conscious world, but the company is still benefiting from 2019. Krispy Kreme sales
hit an all-time high during the pandemic, bringing in net revenue of $1.1 billion—though it
posted a net loss of $64.3 million in fiscal year 2020.

LINK:
https://www.sec.gov/Archives/edgar/data/1857154/000119312521195910/d107564ds1a.htm

64%: Share of the company’s US doughnut sales made through drive-thrus in 2020

LINK:
https://www.sec.gov/Archives/edgar/data/1857154/000119312521177720/d107564ds1.htm
Krispy Kreme

Marketing campaigns: Krispy Kreme has launched several marketing campaigns to build
brand awareness and drive sales. For example, the company launched a campaign in 2020 that
gave free donuts to healthcare workers in the U.S. during the COVID-19 pandemic.

LINK:
https://www.delish.com/food-news/a31944365/krispy-kreme-free-donuts-healthcare-workers-
coronavirus/

Krispy Kreme ranked as 38 among the biggest chains in America last 2021

LINK: https://www.qsrmagazine.com/content/qsr50-2021-top-50-chart

The company generated more than 16.3 billion media impressions, largely driven by the success
of its vaccine program (get a vaccine, get a free glazed donut, to the tune of more than 1.5 million
doughnuts given away) and new product rollouts in 2021.

LINK: https://www.qsrmagazine.com/finance/krispy-kreme-takes-fresh-approach-growth

Krispy Kreme Charges Toward 50,000 Points of Access: In 2021, Krispy Kreme
generated results at or above the top-end of expectations, only further validating the chain’s
operational reformation. Kreme earned $134 million in e-commerce revenue in 2021, growth of
15 percent compared to 2020.

LINK:
https://www.qsrmagazine.com/fast-food/krispy-kreme-charges-toward-50000-points-access#:
~:text=Krispy%20Kreme%20finished%202021%20with,least%2010%20percent%20annual%20
growth.

Balance Sheet of KKI

https://ph.investing.com/equities/krispy-kreme-doughnuts-inc-balance-sheet
Krispy Kreme

SWOT ANALYSIS

Strengths (internal):
1. No. Of Years in the Business: ✅
Krispy Kreme was founded on July 13, 1937, which further indicates that it has occupied
the market for over 85 years. As of 2022 it has expanded to over 30 countries
worldwide, with over 1,400 locations globally.

LINK: https://krispykreme.ca/about-us/history/

2. Global Presence:
Krispy Kreme

Krispy Kreme became a well-known brand in different parts of the world such as the United
States, South Africa, Thailand, Russia, Mexico, and many more countries. It determines the
reach of the firm to the target market and ensures easy accessibility. Therefore, Krispy Kreme's
global presence is considered a strength because it allows the company to generate more
revenue, increase brand recognition, and diversify its operations as it reduces the company's
reliance on any one market, which can help long-term sustainability.

LINK:
https://www.qsrmagazine.com/fast-food/krispy-kreme-charges-toward-50000-points-access#:
~:text=Krispy%20Kreme%20finished%202021%20with,least%2010%20percent%20annual%20
growth
https://www.businesswire.com/news/home/20150217005023/en/Krispy-Kreme-Commemorat
es-1000th-Doughnut-Shop-with-Global-Celebrations

3. Strong IT Structure:
Krispy Kreme

Krispy Kreme collects and analyzes data from various sources, including sales, customer
behavior, and social media, to make informed business decisions. Its IT structure
enables the company to gather and process this data quickly and accurately, which can
help to identify trends and customer-facing systems, such as its website, mobile app,
and loyalty program. Krispy Kreme app in multiple countries and regions is a
testament to the company's strong IT infrastructure and its commitment to providing a
convenient and seamless customer experience. According to the Krispy Kreme website,
the Krispy Kreme app is available in several countries and regions, including the United
States, Canada, the United Kingdom, Australia, New Zealand, the United Arab Emirates,
Saudi Arabia, Bahrain, Kuwait, Lebanon, and Oman. The app can be downloaded from
both the Apple App Store and Google Play Store in these markets.

Links: https://now.krispykreme.com.ph/
https://www.retaildive.com/ex/mobilecommercedaily/krispy-kreme-swirls-up-donut-r
ewards-with-new-loyalty-app
https://www.girlandboything.com/others/krispy-kreme-mobile-app/
https://www.sec.gov/Archives/edgar/data/1100270/000120677415001119/krispykrem
e_10k.htm
Krispy Kreme

https://shopkrispykreme.com/

4. Krispy Kreme is one of the most popular donut & fast food coffee
chains based out of USA

Krispy Kreme is the #1 most intimate fast food brand in MBLM’s Brand Intimacy 2022
Study. According to its website, the enhanced 2022 study combines MBLM’s proven
Brand Intimacy model with the power of AI and big data to analyze over 600 brands,
assessing how consumers bond with the brands they use and love. Costa Coffee and
Starbucks round out the top three fast food brands, respectively.

(listing)

1. Krispy Kreme

2. Costa Coffee

3. Starbucks

4. Cinnabon

5. Outback
Krispy Kreme

6. Steakhouse

7. McDonald’s

8. Chili’s

9. Dunkin

10. KFC

Link: https://mblm.com/
https://www.comunicaffe.com/krispy-kreme-1-most-intimate-fast-food-brand-in-mbl
ms-brand-intimacy-2022-study/
Krispy Kreme

5. Krispy Kreme Ranks 4th in Product Quality Score

LINK: https://www.comparably.com/companies/krispy-kreme/competitors
Krispy Kreme

6. The company takes out innovative & different flavored donuts

especially during the festive season

The introduction of innovative and different flavored donuts can be a strength for Krispy
Kreme, as it can help the company to stand out from competitors, create seasonal
appeal, and provide marketing opportunities. For example, introducing seasonal flavors
during holidays or special occasions can create excitement and anticipation among
customers, and help to boost sales during these periods. In particular, the company
highlighted the success of its holiday-themed donuts, such as the Pumpkin Spice
Original Glazed (2019) and the Gingerbread Glazed, in driving traffic and sales during
the fall and winter seasons.
Krispy Kreme

Link: https://www.businesswire.com/news/home/20220804005357/en/
https://www.bestproducts.com/lifestyle/a28870542/krispy-kreme-pumpkin-spice-orig
inal-glazed-and-cheesecake-stuffed-donuts/

7. Accessible

Convenience can be considered a strength of Krispy Kreme when it comes to buying

their products. The company has established retail stores in various locations, including
high-traffic areas such as grocery and convenience stores, making their products easily
accessible to customers. Additionally, Krispy Kreme has implemented online ordering
and delivery options, further enhancing the convenience factor for customers who can
now order their donuts from the comfort of their own homes.
Krispy Kreme

LINK:
https://yahoo.brand.edgar-online.com/efxapi/EFX_dll/EDGARpro.dll?FetchFilingHtm
lSection1?SectionID=11293927-17209-111357&SessionID=tQKieCxxrrifpk7
https://d3.harvard.edu/platform-rctom/submission/krispy-kreme-a-fresh-hot-mess/

Weaknesses (internal):

1. Limit in product:

Another area that may be a drawback for Krispy Kreme is the fact that they only cater to
doughnuts and coffee. This factor limits them to the point that in different seasons, such as the
summer, when people look for products to hydrate them, Krispy Kreme may not be the number
one on the list.
Krispy Kreme

LINK:
https://menus.ph/krispy-kreme-menu/

2. Fragile Advertising:

Advertisement of products plays an important role in boosting the sale of Krispy Kreme. Also,
sustaining long-term advertising for a world-renowned brand is essential to bringing in new
customers. The lack of continuity of advertising can be a weakness for Krispy Kreme. Although
they already have a strong customer foundation, they can expand their market and attract
additional customers by appropriately increasing their advertising efforts.

LINK:
https://www.sec.gov/Archives/edgar/data/1100270/000120677407000985/krispykreme_10k.
htm
Krispy Kreme

https://www.forbes.com/sites/avidan/2011/11/03/an-iconic-brand-you-can-sink-your-teeth-int
o/?sh=412a5fe0711b

3. Finance: The company said that its net income, after adjustments for one-time events,
declined 53.5% to $5.9 million compared to the same quarter in 2021.

LINK:
https://www.businesswire.com/news/home/20221114006016/en/Krispy-Kreme-R
eports-Third-Quarter-2022-Results

Threats (external):

1. Economic conditions:

As a result of the Pandemic, the global economy is suffering. The economy’s health directly
impacts consumer spending patterns and purchasing power, which in turn affects how well
Krispy Kreme

firms function. Krispy Kreme saw a significant decline in revenue during the early stages of the
coronavirus pandemic in 2020. The donut shop's organic revenue was down 6.7% in the second
quarter of 2020, but the company was able to bounce back relatively quickly, seeing a 22.5%
increase in revenue in Q2 of 2021.

LINK: https://www.mashed.com/972777/why-krispy-kreme-isnt-doing-as-well-as-you-think/
https://investors.krispykreme.com/news-releases/news-release-details/krispy-kreme-reports-s
trong-second-quarter-2021-results

2. Major competitors such as Dunkin Donuts and Starbucks offer similar

products and have strong brand recognition.

Krispy Kreme faces off against Tim Hortons, locally and regionally owned doughnut
wholesalers, and Dunkin' Donuts, which has the most retail locations in the doughnut market.
Krispy Kreme

Link: https://www.123helpme.com/essay/Krispy-Kreme-Analysis-165803
https://www.comparably.com/companies/krispy-kreme/competitor

3. According to the data of Forbes (2023), Krispy Kreme rank as #37 in Customer
Experience (Food & Drink) among the list derives from an extensive online
survey throughout 2022 that gathered more than 3.7 million ratings of more than
2,220 unique brands. Additionally, a positive customer experience can generate
positive word-of-mouth marketing and improve the company's brand reputation.
Krispy Kreme

Opportunities (external):

1. Employer’s Diversity:

Krispy Kreme ranks as #419 on America’s Best Employers for Diversity (2022) among 500
brands or organizations over 60,000 Americans working for businesses with at least 1,000
employees. Based on Statista, survey participants were asked to rate their organizations on
criteria such as age, gender, ethnicity, disability and sexual orientation equality, as well as that
of general diversity. Employers for diversity allows the company to attract and retain a diverse
range of talented employees. Additionally, a diverse workforce can help Krispy Kreme better
understand and meet the needs of its diverse customer base, leading to increased customer
loyalty and sales.
Krispy Kreme

2. Top Brands that Consumers love:

Krispy Kreme rank as #34 among the halo 100 brands in 2022 which highlights excellence in
delivering experience that customers want to have. Furthermore, measures how well - and how
responsibly brands are serving their US customers. Trust and brand values serve as
opportunities for Krispy Kreme because they are important factors in building and maintaining
customer loyalty.
Krispy Kreme

LINK:
https://www.forbes.com/companies/krispy-kreme-doughnut/?list=best-employer
s-diversity&sh=4d7c616f20f2

3. As of 2023, Krispy Kreme is the top 2 doughnut brands among 31 best

doughnuts all over the world.
Krispy Kreme

1. Dunkin Donuts

2. Krispy Kreme
Krispy Kreme

3. Tim Hortons

4. Honey Dew

5. Daylight Donuts

6. Wichell’s Donut
House

7. Shipley Do-Nuts

8. LaMar’s Donuts

9. Top Pot
Doughnuts

10. The Donut

Kitchen

11. The Manchester

Doughnut Company

12. Crosstown
Doughnuts

13. Pippin
Doughnuts

14. Bread Ahead

15. Lee’s Donuts

16. Honey
Doughnuts and
Goodies

17. Lucky’s
Doughnuts at Forty
Ninth Parallel Cafe

18. Cartems
Donuterie

19. Jelly Modern

Doughnuts

20. Pretty Sweet

Link: https://benextbrand.com/donut-brands-of-world/
Krispy Kreme

4. Expansion

Krispy Kreme has invested in expanding its retail store base, both in the U.S. and
internationally. The company has opened new stores in key markets such as New York
(2020) and Chicago, and has also entered new international markets, such as India and
Peru. By expanding into these markets, Krispy Kreme can also better cater to the needs
and preferences of its customers, while potentially tapping into new markets and
demographics. As of 2023, there are a total of 365 Krispy Kreme locations in the United
States of America. These are spread out over 42 states and 287 cities.

LINK: https://abc7ny.com/krispy-kreme-donuts-in-times-square-flagship/6423627/

5. Advertising:

Krispy Kreme could improve its advertising capabilities by looking in the market at which tools
can be utilized. By leveraging social media platforms like Facebook, Twitter, and Instagram,
Krispy Kreme can engage with their customers and showcase their products, promotions, and
events. Influencer marketing can also help Krispy Kreme to reach new audiences and gain
credibility through endorsements from trusted influencers. By sponsoring events and festivals,
the company can increase their visibility and brand awareness.
Krispy Kreme

LINK:
https://www.forbes.com/sites/theyec/2018/07/30/understanding-influencer-marketing-and-w
hy-it-is-so-effective/?sh=5c29bebe71a9