(Bales & Secunda, 2006) In terms of its suppliers, Krispy Kreme has endured difficulties in enabling other areas of its product line, like coffee, to turn a profit, and to manage a fresh supply of pastries and beverages in an effective manner in all of its new stores.

Shareholders vs. management conflicts

According to a recent company press release, with respect to a 2006 securities class action, all persons who purchased the companys publicly-traded stocks between March 8, 2001 and April 18, 2005 are entitled to receive money in excess of “approximately $75 million, consisting of a cash payment of $34,967,000 to be made by the Companys directors and officers insurers, a cash payment of $100,000 to be made by the Companys former Chief Operating Officer, John W. Tate, a cash payment of $100,000 to be made by the Companys former Chief Financial Officer, Randy Casstevens, a cash payment of $4,000,000 to be made by the Companys independent registered public accounting firm, and common stock and warrants to purchase common stock to be issued by the Company having an aggregate value of $35,833,000 (based on the current market price of the Companys common stock).

” (“Krispy Kreme Announces Settlement of Securities Class Action and Partial Settlement of Derivative Action, 2006, Press Releases: Krispy Kreme Official Website)

This will further reinforce shareholder discontent because it confirms the suspicion that not enough money has not been funneled back to the shareholders and instead has gone back the company and to the management — not even to enhance the ability of the company to generate more revenue, although the settlement does not require the company to admit that it did any harm in withholding the funds it is now releasing.

Works Cited

Bales, Richard & Paul Secunda. (18 May 2006). “Krispy Kreme ERISA Class Action

Lawsuit.” Law Professors Blog. Retrieved 4 Dec 2006 at http://lawprofessors.typepad.com/laborprof_blog/2006/05/krispy_kreme_se.html

Corporate Overview.” (2006). Investor Relations. Krispy Kreme Official Website. Retrieved 4 Dec 2006 at http://phx.corporate-ir.net/phoenix.zhtml?c=120929&p=irol-homeprofile

Investor F & Q.” (2006). Investor Relations. Krispy Kreme Official Website. Retrieved 4 Dec 2006 at http://phx.corporate-ir.net/phoenix.zhtml?c=120929&p=irol-faq

Krispy Kreme Announces Settlement of Securities Class Action and Partial Settlement of Derivative Action.” (31 Oct 2006) Press Releases: Krispy Kreme Official Website. Retrieved 4 Dec 2006 at http://phx.corporate-ir.net/phoenix.zhtml?c=120929&p=irol-newsArticle&ID=924411&highlight.