Colin Barry

Krispy Kreme Donuts (BAV, Tuesday, Week 5)


Modeling growth =>> decompose into:
Sources of top-line growth (new stores, new tech, geographic expansion, higher same-store sales, etc.)
Sources of bottom-line growth (efficiency, new higher-margin products, reduced shipping costs, etc.)

Forecasting balance sheets =>> break into four parts (NWC, LT Assets, Net Debt, Common Equity):
-- Scale NWC as a percentage of sales (or something)
-- Add planned CAPEX into LT Assets
-- Assume no increase in debt (or build in plans for more debt)
-- Move net income from forecasted I/S into Common Equity
====>>>> Resolve (Assets = Liabilities + Equity) by paying a dividend or changing Net Debt