Consistent with the successful execution of overseas
Krispy Kreme Doughnut Inc. (
opened its 500th international unit in Aguascalientes, Mexico
this month. The store opening supports Krispy Kreme's goal of
opening 900 international units by 2017.
CHIPOTLE MEXICN (CMG): Free Stock Analysis
KRISPY KREME (KKD): Free Stock Analysis
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Krispy Kreme opened its first international unit 11 years ago.
Since then, the company has spread its footprints to 20 locations
across Latin America, the United Kingdom, Asia Pacific and the
The company launched its first unit in Mexico in 2004. The new
unit based in Aguascalientes marked the company's 90th store in
the country. The unit is owned and operated by the company's
licensed franchise in Mexico - Taco Holding, S.A. de C.V.
Over the past five years, major restaurant operators in Mexico
have enjoyed increased market acceptance on the back of booming
demand. According to global market research company IBISWorld,
the Mexican Restaurants industry revenues have grown at an
estimated annualized five-year rate of 1.4% to $30.7 billion
since 2007. This includes a 1.5% revenue enhancement in 2012
driven by consumer spending recovery. Krispy Kreme's major peer
Chipotle Mexican Grill, Inc. (
has a strong presence in Mexico and enjoyed average annual
revenue growth of around 20.5% over the past five years.
In the last one year, Krispy Kreme inked several development
deals with franchises to expand across India, Russia, the
Philippines, the United Kingdom and other countries. It includes
the company's deal with Star360 Group to set up 15 Krispy Kreme
franchise locations in Singapore over the next five years.
Based in Winston-Salem, North Carolina., Krispy Kreme is a
leading branded specialty retailer of premium quality doughnuts.
As of September 30, 2012, the company operated 730 stores across
We currently have long term Outperform recommendation on Krispy
Kreme. Also, it carries a short term Zacks #2 Rank (Buy).