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Article: Krispy Kreme's Failings Tough To Glaze Over
- Article from:
- The Washington Post
- Article date:
- August 30, 2004
- Author:
CopyrightThis material is published under license from the Washington Post. All inquiries regarding rights should be directed to the Washington Post. (Hide copyright information)
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Investors are finally figuring out that Krispy Kreme Doughnuts'
shares are just like its doughnuts: Get 'em while they're hot because
they can go stale in a hurry.
So stale, so fast that Krispy Kreme stock is now priced like the
products in those old-bread outlets, selling Friday for a third of
what it cost last summer, when Fortune magazine proclaimed Krispy
Kreme "the hottest brand in America."
Krispy Kreme was the second-best performing initial public
offering of 2000, according to calculations by Bloomberg. The price
of the stock had jumped eightfold, to $44.59, by last summer, more
than 50 times the profits the company earned last year.
Last week, the stock hit an all-time low of $12.75 ...