Hindsight shames us. We look back at our fashion faux pas in the ’70s, that drinking binge at the office party and that can’t-go-wrong purchase of a McMansion in 2006 and can just hang our heads.
Krispy Kreme Doughnuts (KKD) at $40 a share was one such cause for regret. The stock hit that level in 2003 and investors thought they had another Starbucks (SBUX) in sight. Instead, they were spying a stock with more air in it than you’ll find in a chocolate éclair.
Krispy Kreme collapsed because of overly ambitious expansion plans. It also was guilty of buying its own hype. The doughnuts were pushed as a regional must-have that was finally going national. But Americans were getting more diet-conscious and not everyone wanted a new doughnut place. There certainly wasn’t enough demand to sustain stores that were rather expensive to build.
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