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The doughnut IPO: Krispy Kreme wants to go public, again

The doughnut IPO: Krispy Kreme wants to go public, again

Krispy Kreme are the latest company looking to cash in on the still-hot stock market, filing plans for an IPO earlier this week.

Completely stuffed

We've all experienced that feeling of eating one too many doughnuts, but Krispy Kreme management didn't get that memo back in the early noughties, in the company's first stint as a public company. After its IPO in 2000, Krispy Kreme expanded aggressively, with both franchises and company-owned stores — until a big hole was found in the company's accounting.

Krispy Kreme franchisees were accusing management of overloading areas with Krispy Kreme stores. That gave the company a short term boost in revenues, but longer term it meant franchisees were competing with each other, and the growth was completely unsustainable. More seriously, some franchisees accused Krispy HQ of "channel stuffing" — claiming that twice the number of doughnuts they actually needed would turn up at their franchise in the final few weeks of a quarter, in order for the company to meet its sales targets.

Things started to really unravel in 2004, with the company's first ever quarterly loss. The CEO blamed the rise of the Atkins diet and a new trend of low-carb eating. From there things went from bad to worse. Reports of channel stuffing were combined with some unusual financing choices and lucrative buyouts for some franchisees, some of which had ties (like being the ex-wife of the CEO) to insiders at the company.

After restating its profits (down, by a lot) the Krispy Kreme share price cratered and sales stalled for a number of years. After a few solid years a private company bought the entire business and took it private in 2016. It looks like they've been busy since then, growing revenue almost 20% a year for 4 years. Krispy Kreme is ready for its second chapter as a public company.

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Starbucks issues apology after viral “Bearista” cup meltdown

Holiday cheer turned into chaos this week for Starbucks after the coffee giant’s new “Bearista” holiday cup sent fans into a frenzy. 

Dropped alongside its 2025 holiday menu, the $30 beanie-wearing glass bear tumbler sparked long lines, sellouts, and even in-store scuffles before Starbucks stepped in with an apology.

“The excitement for our merchandise exceeded even our biggest expectations,” the company said in a statement to People. “Despite shipping more Bearista cups to our coffeehouses than almost any other item this holiday season, the Bearista cup and some other items sold out fast.”

Within hours of launch, frustrated fans flooded Starbucks’ social media pages and even store hotlines. Some customers waited in line before dawn and others said their stores received only a handful of cups. In one Houston location, the craze even turned physical, with police reportedly called to break up a brawl. Meanwhile, the cup is already reselling on sites like eBay, with listings topping $600.

“We understand many customers were excited about the Bearista cup and apologize for the disappointment this may have caused,” Starbucks said. While in-store customers may be upset, investors seem happy about the viral hit, as the stock has risen over 3% on Friday.

If you’re still hoping for a Bearista at market price, that may not be on order: the chain didn’t disclose how many cups were made or whether a restock is planned.

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Target tells workers to smile, wave, and greet shoppers if they come within 10 feet of them

Target just rolled out a new rule for store employees: smile, make eye contact, and greet or wave when a shopper comes within 10 feet — and if they get closer, within four feet, ask whether they need help or how their day is going, according to a new Bloomberg report.

Dubbed the 10-4 program internally, the rule mirrors rival Walmarts own 10-foot policy, formalizing behavior Target had previously only encouraged.

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Monster surges on energy drink buzz, while Celsius sinks on distribution concerns

Shares of Monster Beverage climbed 5% after the bell on Thursday, and held most of those gains into early trading on Friday, following strong Q3 results.

The energy drink giant topped market expectations, with quarterly sales up 17% year over year to $2.2 billion and adjusted net profits growing 41% to $524.5 million — 11% ahead of Wall Street’s estimates. In the report, Monster highlighted its zero-sugar line and new product launches, with a stack of novel flavors already released this year, as bright spots.

During a call with analysts, Chief Executive Hilton Schlosberg said that the global energy drink category “remains healthy with robust growth,” The Wall Street Journal reported, adding that demand for more affordable caffeinated drinks is rising as coffee has become “really expensive.”

Meanwhile, rival beverage business Celsius saw shares fall as much as 23% on its Q3 results yesterday — despite beating expectations, with revenue jumping 173% — largely due to concerns about a change in the company’s distribution channel, as its newly acquired Alani Nu brand joins the PepsiCo distribution network.

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