Leading doughnut maker,
Krispy Kreme Doughnut Inc.
), is set to unveil its first franchised outlet in Delhi, the
capital of India, this week. The news came in the wake of the
signing of a franchise agreement with Bedrock Foods Pvt., Ltd. in
Apart from this opening, the company will bring 34 more Krispy
Kreme Doughnut restaurants in association with Bedrock Foods in
Northern India over the next four years. Bedrock Foods has been
operating in the Indian franchisee market for quite some time. It
holds the license for developing Subway restaurants across
Northern, Western and Southern India.
With strong knowledge about local market, the franchisee
expects that its association with Krispy Kreme would help spread
its Glazed doughnuts and freshly-brewed coffee successfully
throughout the growing North Indian market. The company is
bringing eggless doughnuts to tap the majority of the Indian
population which is vegetarian.
We believe that Delhi is a strategic fit considering the
numerous government organizations, IT firms, well-known
universities and research institutes located in the state. With
more than 50 shopping malls already in action and dozens under
construction, Delhi is one of the vital locations in India.
Strategically positioned at Select City Walk mall in Saket, the
new restaurant is expected to attract huge traffic, going
Krispy Kreme has been highly focused on expanding
internationally, especially in the emerging markets, for the past
few years. The company currently operates more than 790
restaurants worldwide, nearly 70% of which are located in the
international markets like Latin America, the United Kingdom,
Russia, the Asia Pacific and the Middle East.
The recent store opening is in line with Krispy Kreme's goal
of opening 900 international units by 2017. In early October, the
company debuted in Singapore in association with Star360 Group, a
branch of Dubai-based Landmark Group in Oct 2013. As per the
franchisee agreement, the company will launch 14 more restaurants
in Singapore by 2017.
Restaurants Stocks That Warrant a Look
Krispy Kreme carries a Zacks Rank #2 (Buy). Investors
interested in the restaurant industry may consider stocks like
Cracker Barrel Old Country Store, Inc.
Famous Dave's of America Inc.
). All these companies hold a Zacks Rank #2.
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