|Dough in Doughnuts |
Shares have their cake
1. Goodbye, Mr. DoughnutsSometimes it's tough to say, "So long." Other times -- well, you'd be surprised how easy it is.
That's what we noticed Tuesday when Scott Livengood, chairman and CEO of Krispy Kreme Doughnuts ( KKD), announced his departure from the company.
Not that the news was too surprising. The company's books are officially a mess: The company is in the midst of restating previously announced results and is unable to report the Oct. 31 quarter's numbers on a timely basis. The retail operations supposedly documented by those books are in terrible shape as well. As the company announced Tuesday, average weekly sales per factory store, in the eight weeks ended Dec. 26, fell 25% from the corresponding quarter a year earlier. So there was much virtual cheering Tuesday when KKD announced the appointment of a new chairman and, separately, a new CEO who's part of a turnaround crew. In fact, shares jumped 13.5% on the news. Now, that's got to hurt: You leave the company you've led for half a decade, and suddenly the company is worth $73 million more than it was when you were there. Yes, Krispy Kreme's shareholders held a CEO bake-off, and Livengood got torched.