Krispy Kreme is latest victim of low-carb diet?

PAUL NOWELL

Associated Press


CHARLOTTE, N.C. - Is the delectable Krispy Kreme doughnut the latest victim of the low-carb diet craze?

The Winston-Salem-based doughnut maker said Friday that lower demand for its high-calorie treats - which the company attributes in part to the low-carb diet phenomenon - was behind its decision to lower its profit guidance by 10 percent.

"The popularity of low-carb diets has captured the consumer's attention," said Scott Livengood, chief executive and chairman. "It's impossible to predict if low-carb is a passing fad or will have a lasting impact.

"For several months, there has been increasing consumer interest in low-carbohydrate diets, which has adversely impacted several flour-based food categories, including bread, cereal and pasta," he said.

Until recently, Livengood said, the consumer change had "little discernible effect on our business." However, he said, recent market data suggests consumer interest in reduced carbohydrate consumption has heightened.

"This phenomenon has affected us most heavily in our off-premises sales channels, in particular sales of packaged doughnuts to grocery store customers," he said.

In March, Krispy Kreme unveiled plans to offer a low-sugar doughnut.

One of Krispy Kreme's Hot Original Glazed doughnuts has 200 calories. More than half those calories come from fat, which gives the fried doughnut texture and flavor.

On Friday, Livengood said the company estimates diluted earnings per share from continuing operations will be approximately 23 cents. The company also expects fiscal 2005 diluted EPS from continuing operations to be between $1.04 and $1.06, which is approximately 10 percent lower than prior guidance, he said.

Including one-time charges, diluted earnings per share from continuing operations will be about 16 cents for the first quarter and between 93 cents and 95 cents for fiscal 2005, he said.

"Our current guidance assumes a continuation of the low-carb phenomenon that is affecting the industry," Livengood said. "Needless to say, we are disappointed that external forces have caused us to revise our first quarter and fiscal 2005 earnings guidance."

The company will divest its existing Montana Mills operation, which will result in a charge of at least $35 million in the first quarter and charges of $2 million to $4 million in subsequent quarters, Livengood said.

In addition, six company stores will be closed, he said.



http://www.fortwayne.com/mld/newsse...ess/8613315.htm

http://www.foxnews.com/story/0,2933,119273,00.html

http://quote.bloomberg.com/apps/new...efer=news_index

1 donut = 200 calories.... yikes!

I feel the same amount of sympathy for them as I do for the tobacco industry.

I got a laugh out of the quote calling this sugar laden crap "delectable".

I had one Krispy Kreme doughnut before I started low-carbing. I never wanted a second one. Yuck!

You know, I dont get the Krispy Kreme thing. They're overly greasy and coated with so much sugar that its almost like a varnish instead of a glaze. I hated them even before LC.

I like to think of donuts as being poison (and for me, they are!) Then I am less tempted to have one.
I have a mental image of the Krispy Kreme future: shadowy individuals in grubby coats hanging around street corners "Want a donut? Fresh!"

I never really understood the appeal of donuts. The only donuts I liked were the ones immediately out of the fryer that were all hot. But other than that, they never appealed to me.

Cinnamon rolls, but not the ones made by donut shops.

I still eat a donut once in a blue moon=) Mmmmmm, donuts.... /drool on

What helps me resist the allure of a Krispy Kreme donut is the thought of all that hydrogenated fat. If you manage to condition yourself to believe that hydrogenated fat is poison (which it is), all of a sudden a whole slew of bad-for-you food become easier to resist; baked goods; muffins, cookies, cakes, most fast food.

Well actually I'm lying. The only thing that helps me resist a KK donut is that the nearest place to buy them is over 200 km away. Those things are sugar crack.

I agree, I love them. The last time I had one was at Christmas. When I drive by the "Hot donuts" sign, I just turn my head, and remind myself that a few minute's pleasure isn't worth going out of ketosis for two/three days.

I've never been into Krispy Kreme's but I know how you guys feel...for me, the equivalent pharmaceutical grade carb is a Cinnabon...if I eat one of those, I might as well be shooting heroin. I'm not interested in a low-carb version...I just need to stay away.

Krispy Kreme glazed are one of the best things I have ever eaten. I had my last one (not last ever, I'm sure I'll have one when I hit goal) about a month ago, as a farewell sort of thing before I started LC this time. The crazy thing is now, as much as I loved them before, I don't really crave them that much. There is a KK next to the Sam's where I go to buy my meat, and I can smell it whenever I go. Now it's just enough for me to sit and smell, and I'm fine. THAT is how I know that this time, I am committed!!!

Way to go BBQ man. Hang on to that feeling, it's precious.

Krispy Kreme donuts are just O.K. I don't care for donuts much unless they are powered on the outside and have a choco or raspberry filling inside. I can easily do without them though, as anyone can.

BBQman good job on controlling cravings, keep that state of mind intact.