Earlier this month, U.S. News & World Report blogger Rick Newman forecast 15 companies that might not survive 2009, naming Krispy Kreme Doughnuts Inc. among them. Newman said the chain overexpanded in the 1990s and took on too much debt. In addition, despite cutting costs and closing underperforming stores, Krispy Kreme hasn't earned an operating profit in three years.
Krispy Kreme spokesman Brian K. Little said the company is still growing, not closing. The company has reduced its debt in the last two years by $44 million and currently has "in excess of $30 million cash on the balance sheet," he said. Krispy Kreme is opening new stores in the United States — including one in its hometown of Winston-Salem, N.C. — as well as internationally, with recently signed development agreements for stores in China, Malaysia and Turkey.
"We believe our future is bright," Little said. "Krispy Kreme has been in existence for more than 71 years, and we see no reason why it will not be around for another 71 years and more. "
International growth partnership
To handle the development of integrated product, promotional and brand-building efforts for its growing international store operations, Krispy Kreme has appointed BBDO Guerrero as a partner, the company has announced. BBDO Guerrero is working with Krispy Kreme on global projects developed for markets in Asia-Pacific, Latin America, Europe and the Middle East.
