The Rise and Fall of Krispy Kreme [View All]

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The Tragedy of Krispy Kreme

By Carol Kopp
On 12:20 pm EDT, Tuesday October 13, 2009


There's a truism among investors that you should invest in what you know, understand, and like. It's a common sense strategy: You spot something new. It's special. It's useful or innovative. It's cool and affordable. Let me buy some of that!

The response to that can be summed up in just two words: Krispy Kreme (KKD).

Krispy Kreme had been a popular doughnut chain in the South since 1937, but remained unknown to the rest of us until about 1996. That's when the first Krispy Kreme popped up in New York City, on West 23rd Street.

Believe it or not, the town went nuts.

Doughnuts are a major food group in New York, where people eat many of their meals while walking. These fabulous new doughnuts were favorably reviewed by local newspapers. Lines formed when the "Hot Doughnuts" sign was lit. The two young men who owned the franchise were extolled as modern entrepreneurs.

I lived one block away from the store, and thought Krispy Kremes were a much better thing than sliced bread. I was soon as knowledgeable about the product as any potential investor could be. .............(more)

The complete piece is at: http://finance.yahoo.com/news/The-Tragedy-of-Krispy-minyanville-220090191.html?x=0