Winston-Salem, NC-based doughnut maker
Krispy Kreme Doughnut Inc.
) is set to debut in Moscow, Russia this week. The latest opening
came in the wake of the signing of a development deal between
Krispy Kreme and LLC Doughnuts Cafe in Apr 2012. The store
opening supports the company's goal of opening 900 international
units by 2017.
Per the deal, LLC Doughnuts Café will unveil 40 restaurants in
Moscow in the coming years. LLC Doughnuts Café, an operating arm
of Novikov Restaurant Group, boasts superior local market
knowledge and has a proven track record in the restaurant
industry. It operates about 40 family as well as fine dining
restaurants in Moscow, St. Petersburg and London, U.K.
Possessing a strong know-how of local market, the franchisee
is hopeful that its collaboration with a global brand like Krispy
Kreme would help spread its Glazed doughnuts and freshly-brewed
coffee successfully across Moscow.
We believe, Moscow, being the capital as well as the most
populous city of Russia, is a strategic fit for the company's
debut in the country. The city is also considered as the
political, economical, financial and scientific hub of Russia.
The company's alliances with LLC Doughnuts Cafe reflect its
intent to make Russia one of the key markets for international
expansion considering its stepped up economic growth.
The Zacks Rank #3 (Hold) company is geared to enter into
strategic alliances with several companies during the past few
years to expand its presence especially in the international
locations. Krispy Kreme opened its first overseas unit 11 years
ago. Since then, the company has spread its footprints to 22
locations across Latin America, the United Kingdom, Russia, Asia
Pacific and the Middle East.
In 2013, the company unveiled its first outlets in Bangalore,
India. The company is also set to debut in Singapore at the end
of this year. Apart from this, Krispy Kreme is also trying to
venture into the Central and South American markets.
Others players in the same industry, which look attractive at
current levels include
AFC Enterprises Inc.
Domino's Pizza, Inc.
CEC Entertainment Inc.
). All these stocks carry a Zacks Rank #2 (Buy).
AFC ENTERPRISES (AFCE): Free Stock Analysis
CEC ENTERTANMNT (CEC): Free Stock Analysis
DOMINOS PIZZA (DPZ): Free Stock Analysis
KRISPY KREME (KKD): Free Stock Analysis
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