Bloomberg Anywhere Remote Login Bloomberg Terminal Demo Request


Connecting decision makers to a dynamic network of information, people and ideas, Bloomberg quickly and accurately delivers business and financial information, news and insight around the world.


Financial Products

Enterprise Products


Customer Support

  • Americas

    +1 212 318 2000

  • Europe, Middle East, & Africa

    +44 20 7330 7500

  • Asia Pacific

    +65 6212 1000


Industry Products

Media Services

Follow Us

Markets & Finance

CIBC Lowers Krispy Kreme to 'Sector Perform'

CIBC World downgraded Krispy Kreme Doughnuts (KKD) to sector perform from sector outperform.

Analyst John Glass downgraded on continuing concerns about falling new unit productivity, a declining return on capital, and an increased dependence on satellite and international stores to grow earnings. Glass thinks these issues add to the doughnut chain's risk profile, and could negatively impact fiscal 2005 earnings growth.

Glass notes average weekly sales fell 3.1% year-over-year -- the largest decline of the year, indicating new stores continue to open significantly below the chain's average. He remains a long-term fan of Krispy Kreme's story, and thinks the strategy evolution to smaller units may pay off. But he says Krispy Kreme's increased financial risk and declining near-term returns can't be ignored.

blog comments powered by Disqus