3 Risks That Could Derail Krispy Kreme's Turnaround
Krispy Kreme (NASDAQ: DNUT) is once again trying to prove that its beloved brand can translate into a great business. After years of uneven growth, thin margins, and a failed partnership with McDonald's, management is now focused on profitability -- closing weaker stores, refranchising operations, and improving cash flow.
The early signs are encouraging. The adjusted EBITDA margin has improved, and free cash flow turned positive last quarter. But turnarounds are rarely smooth, and Krispy Kreme's comes with its own set of challenges.
Here are three key risks that could derail its efforts and keep the company from becoming the scalable, high-return brand that investors hope it can be.
Source Fool.com
