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Krispy Kreme's doughnuts suck
CHARLOTTE, N.C. - Krispy Kreme Doughnuts Inc. is scrapping its test of bakery stores in Wal-Mart stores.
The beleaguered Winston-Salem, N.C., doughnut maker will close five outlets in Wal-Mart stores around the United States as of Sunday, and the sixth in April, according to a company spokeswoman.
"It was a test, and we've made a decision right now that the concept is not viable, but we're going to continue our great relationship with Wal-Mart with our wholesale business," spokeswoman Amy Hughes said Wednesday.
More than 500 Wal-Mart stores carry doughnuts made in Krispy Kreme's own factory-style stores as part of its wholesale business.
A representative for Wal-Mart Stores Inc. said the retailer doesn't comment on relationships with tenants or suppliers.
Stores in Wal-Marts in Charlotte, Mount Airy, N.C., Virginia Beach, Va., Maysville, Ky., and Garland, Texas will close as of Sunday, Hughes said. A store in Hutchinson, Kansas, will close in April.
Asked if the closings are related to Krispy Kreme's financial situation, Hughes said, "That has nothing to do with it." She also said they are unrelated to Dunkin' Donut's move, announced in May, to open its own shops within 10 Wal-Mart stores. Dunkin' Donuts is a unit of Allied Domecq PLC, a British spirits and wine company.
Krispy Kreme began rolling out stores with "Hot Doughnuts Now" signs in Wal-Marts in September 2003 as a test.
Company executives a year ago said the first test store, in Mount Airy, N.C., was generating about $20,000 a week in sales, on average. That was well below the company's average at the time of around $69,000 but profitable, given the lower startup and operating costs, executives said then.
Krispy Kreme has more than 400 company-owned and franchise stores in the United States, Canada, Mexico, Australia, South Korea (news - web sites) and Britain.
Its shares began a sharp decline in May 2004 from lofty levels, after the company issued its first profit warning in its four-year history as a public company. That profit warning since come under regulatory and legal scrutiny amid concerns about and its accounting for franchise repurchases.
Krispy Kreme faces a possible default of that credit agreement Friday, and investors are awaiting word on the company's financial situation and prospects.
Krispy Kreme shares rose 28 cents, or 3.2 percent, to close at $9.15 Wednesday on the New York Stock Exchange (news - web sites). On a 52-week basis, there was a low of $5.05 on Feb. 24 and a high of $35.35 last March 30.
Krispy Kreme's doughnuts suck
Krispy Kreme is good.
I Total Agree
The Donut Shop Next Door Puts Them To Shame
I prefer Shipley's.
I thought you only ate meat???
I wish dunkin donuts was strong again in S.A. There's only one dunkin donut place in town and that's on Bandera road heading towards downtown.
Yes, but they have great sausage kolaches too!
, I remember when walzem had Winc 's donuts. They still have these in the southwest U.S like in Las Vegas. Those were some good donuts too.
There's a Dunkin Donuts on military and highway 90. It's around where Wilford Hall is.
Well, at least there's still two around. Only wish they were closer to me.
Krispy Kreme SUX! One bite out of one of their doughnuts and you become a diabetic for life!
thank you fluff mccartney for your weekly doughnut report.
krispy kreme is way to sweet but i'll have one here and there...havent had one since forever.
krispy kreme overexpanded too fast and they got ed by the health craze in America.
They were idiots on the first part and just unlucky on the second.
their main flaw was letting the klan run the show. race relations does count.
In a related story Wal-Mart has become a much more dangerous place again as the free security provided by the constant flow of cop cars has come to a stop.
There is also one on W. Military near Lackland...I think.
best donuts in town
the original hot donut shop on fredericksburg road and bab - they also have some the best tacos - two drive thrus - one for donuts and one for tacos - no
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