Winston-Salem, North Carolina-based leading doughnut maker,
Krispy Kreme Doughnut Inc.
), has been expanding internationally, especially in the emerging
markets, for quite some time. The company currently operates more
than 790 restaurants worldwide, of which 546 are located in the
international markets like Latin America, the United Kingdom,
Russia, the Asia Pacific and the Middle East.
In a bid to further strengthen its presence in the overseas
market, the restaurateur recently declared that it is set to
debut in Singapore on Oct 12, 2013. Strategically positioned at
Tangs Orchard Basement 1, the new 1,200 square-foot restaurant is
expected to attract huge traffic, going ahead.
The latest opening came in the wake of the signing of a
development deal between Krispy Kreme and Star360 Group in Oct
2012. As per the franchisee agreement, the company will launch 14
more restaurants in Singapore by 2017.
Star360 has been operating in the Southeast Asian food and
beverage service market for more than 20 years. The group has
superior local market knowledge and has also established its
presence in the premium retail industry of Singapore, Malaysia,
Indonesia, Hong Kong, Philippines, Thailand, Taiwan and Japan.
Hence, we believe that Krispy Kreme's collaboration with Star360
reflects its intent to successfully spread its famous Glazed
doughnuts and freshly-brewed coffee among brand-conscious
consumers in Singapore.
Singapore is one of the fastest growing economies in Southeast
Asia and it is one of the Four Asian Tigers countries. Increasing
disposable income has enabled the residents to spend on branded
food items. We believe these factors have caught the attention of
The recent store opening supports Krispy Kreme's goal of
opening 900 international units by 2017. In late September, the
company inked a franchise development deal with IRCC Ltda., a
Bogota-based restaurant operator, to enter into the flourishing
South American market. Following the deal, the restaurateur will
launch 25 restaurants across Colombia's key cities such as
Bogota, Medellin and Barranquilla by 2018.
Other Stocks to Consider
Krispy Kreme holds a Zacks Rank #3 (Hold). Other players in
the restaurant industry that look attractive at the current level
AFC Enterprises Inc.
Cracker Barrel Old Country Store, Inc.
Domino's Pizza, Inc.
). All these stocks carry a Zacks Rank #2 (Buy).
AFC ENTERPRISES (AFCE): Free Stock Analysis
CRACKER BARREL (CBRL): Free Stock Analysis
DOMINOS PIZZA (DPZ): Free Stock Analysis
KRISPY KREME (KKD): Free Stock Analysis
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