Back to top

Analyst Blog

Krispy Kreme Doughnut Inc. (KKD - Snapshot Report) is all set to expand into Taiwan. Recently, it inked a development deal with Huan Hsin Co., Ltd, its franchisee, for setting up 10 locations in the country over the next five years.

Chinese restaurant operator Huan Hsin has 30 years of experience in the restaurant sector, food processing and imports, and electronics manufacturing in Taiwan, Malaysia, and China.

Huan Hsin manages a variety of restaurants like approximately 90 "Super gCar" fried chicken take-out stores in Shanghai, Suzhou, and Nanjing, and 4 "Mr. Wish" fresh fruit/bubble tea shops in Shanghai. Given its familiarity with local food habits and a strong presence in the same industry, Huan Hsin is deemed a strategic fit for Krispy Kreme’s Taiwanese expansion plan.

The latest alliance exhibits Krispy Kreme’s intent to make Taiwan one of the prime markets for international expansion, considering stepped up economic growth and under-penetration of quick-service restaurants in the region compared to the North American countries. Further, Krispy Kreme sees coffee and doughnuts as a flourishing category in Taiwan. It also believes that Taiwanese have a preference for Western food.

Krispy Kreme currently has a presence in 21 countries around the globe. According to management, the company’s overseas expansion is expected to be more in 2013 than in 2012. Encouraged by its six-fold growth in international exposure over the last five years, the company seeks to double its current overseas store base within 2016.

We believe the company’s extended global reach bodes well for its financials. On the flip side, there is some fear of deterioration in comparable store sales from cannibalization by the new stores.

Krispy Kreme currently retains a Zacks Rank #2 (Buy). Some other restaurant industry stocks currently performing well include Chuy's Holdings Inc. (CHUY - Snapshot Report), Dunkin' Brands Group Inc. (DNKN - Snapshot Report) and Burger King Worldwide Inc. (BKW - Analyst Report), each with a Zacks Rank #2 (Buy).

Please login to or register to post a comment.

New to Zacks?

Start Here

Zacks Investment Research


Are you a new Zacks Member or a visitor to

Top Zacks Features

My Portfolio Tracker

Is it Time to Sell?

One of the most important steps you can take today is to set up your portfolio tracker on Once you do, you'll be notified of major events affecting your stocks and/or funds with daily email alerts.

More Zacks Resources

Zacks Rank Home - Evaluate your stocks and use the Zacks Rank to eliminate the losers and keep the winners.

Mutual Fund Rank Home - Evaluate your funds with the Mutual Fund Rank for both your personal and retirement funds.

Stock/Mutual Fund Screening - Find better stocks and mutual funds. The ones most likely to beat the market and provide a positive return.

My Portfolio - Track your Portfolio and find out where your stocks/mutual funds stack up with the Zacks Rank.

Zacks #1 Rank Top Movers for Zacks #1 Rank Top Movers

Company Symbol Price %Chg
PLANAR SYST… PLNR 4.44 +5.21%
BITAUTO HOL… BITA 81.71 +5.12%
CTPARTNERS… CTP 16.66 +4.26%
CHINA BIOLO… CBPO 47.91 +3.30%
MALLINCKROD… MNK 72.94 +2.85%