Krispy Kreme Financial Statements Comparison Analysis

Running head: FINANCIAL STATEMENTS COMPARISON ANALYSIS

    Financial Statements Comparison Analysis

        FIN/571

October 30, 2014

         Dr. Edward Hartmann

(Krispy Kreme Year Ending 2012, 2011 -Financial Statement Snap Shop and Summary)

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On premier sales increased 10.4% to 126.0 million in fiscal 2012 from $11.41 million in fiscal 2011. On for fiscal 2011, the company implemented price increases at substantially on all its stores designed to help offset the rising costs of doughnut mixes. Other ingredients and fuel resulting from higher commodity prices. The price increases, which was effected approximately 60% of the on- premises sales, average approximately 14%. These price increases are not fully reflected in the same store sales metrics because they were in effect for only 47 of the 52 weeks in fiscal 2012. Additionally, during the third quarter, the company raised its fundraising prices approximately 8%.

Sales on wholesale accounts increased 10.5% to $145.7 million in fiscal 2012 from $131.8 million in fiscal 2011. Approximately 6.0 percentage points of the sales increase reflects prices increased, not only applied in the first quarter of fiscal 2012 but also price increases implemented in fiscal 2011. The company believes the wholes sales increase was greater than that of the doughnut industry as a whole. The company started executing price increases for some products offered in the whole sale channel mid-April 2011 and substantially complemented fulfillment of increases during the second quarter. Those price increases effected products comprising approximately 60% of wholesale sales, and those products was approximately 11%.

Sales to grocers and mass merchant increased 15.1% to $87.7 million with 12.7% increase an average weekly sales per door and 2.6% increase in the average number of doors served.

(Krispy Kreme Year Ending 2013, 2012 -Financial Statement Snap Shop and  Summary)

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Krispy Kreme supply chain revenues before intersegment sales eliminations were $215.4 million in fiscal 2013 compared to $206.5 million in year 2012. Excluding the 53rd week. Krispy Kreme Supply chain revenues before intersegment sales eliminations increased 2.2%.  Sales of doughnut mixes roses 4.6% on in fiscal 2013, reflecting higher unit volumes partially offsets by lower selling prices resulting from reduction in raw materials costs.  Packaging and supplies, made principally to company and Domestic Franchise stores, 0.8% in fiscal 2013 due to higher selling prices of sugar partially offset by lower unit volumes in certain categories. While system wide sales at company and domestic franchise stores rose in fiscal 2013 compared to fiscal 2012 a greater percentage of such, the system wide sales was customers compared to wholesale customers in fiscal 2013.