Krispy Kreme Hoping for Sweet Success on Wall Street
Posted April 4, 2000 7:00 a.m. EDT
RALEIGH — The hot purchase on Wall Street Tuesday was a company near and dear to many North Carolinians.Krispy Kreme Doughnutswent public, starting the day at $21 a share.
Who can resist a fresh, hot Krispy Kreme doughnut? The real question is whether the company will sell on Wall Street.
Krispy Kreme was founded in Winston-Salem in 1937. Over the past 6 years, the company has expanded into states like New York and California.
Wednesday's initial public offering was enough to make some investors' mouths water.
"I think it represents a good potential, and I've seriously thought about taking a shot at it," says Krispy Kreme patron John E. Graham.
"I think it's probably a little bit of nostalgia. I think it's a little bit of motherhood, apple pie and USA," says stock expert Ronnie Grove.
Grove says Krispy Kreme's history will be enough to get people to sink their money into the stock. But he warns fast food companies are traditionally not the best investment.
"I don't think it's going to be a good long-term core investment. I think it'll be a good novelty," says Grove.
Novelty or not, many doughnut lovers can already taste the return on their investment in more ways than one.
"I don't know about the stocks, but I know the doughnuts are good," says Krispy Kreme patron Jerry Parker.
The shares, which trade under the symbol KREM, finished the day at $37 a share -- up more than 70 percent.