Krispy Kreme Enters Thailand – Analyst Blog

Krispy Kreme Doughnut Inc. (KKD) announced that its first franchise-owned store has been launched in Thailand and 20 more stores are expected to open in the country by 2015.

 

The Winston-Salem, North California based company’s subsidiary Krispy Kreme Doughnut Corporation through its franchisee KDN Company Limited has opened the store. The franchisee is mostly owned and controlled by Ms. Ausanee Mahagitsiri, who with her family owns and operates one of Thailand’s largest conglomerates, PM Group. 

 

The first Thai store is located at the centre of the Bangkok business district. The location is quite attractive as Bangkok is not only the largest city of Thailand but also its capital.

 

We believe that this opening is the first step by Krispy Kreme to make its products available in Thailand. The new shop will not only increase the market share of the company but will also offer the company a toehold in Thailand. Moreover, this new store opening also marks a definite step toward increasing its international location.

 

Including the United States, the company earlier had 20 locations. The Thai store marks its 21st location.

 

In August 2010, Krispy Kreme through its franchisee, Dominspec, S.A. also opened its first shop in the Dominican Republic. The franchisee plans to open 14 stores in the country by next five years. 

 

Krispy Kreme’s primary competitors are Biglari Holdings Inc. (BH), AFC Enterprises Inc. (AFCE) and Caribou Coffee Company Inc. (CBOU).

 

Krispy Kreme currently retains a Zacks #1 Rank, which translates into a short-term Strong Buy rating. We are also maintaining our long-term Outperform recommendation on the stock.

 

Founded in 1937, the company engages in owning and franchising Krispy Kreme doughnut stores.