ABSTRACT: Like many restaurant chains, Krispy Kreme Doughnuts earns revenues from both company-owned stores and from franchisee-owned stores. Following its April 2000 IPO, Krispy Kreme Doughnuts entered into several joint ventures with franchisees to develop new stores. In some situations, the Company also re-acquired franchise rights from its franchisees. This case provides you with the opportunity to assess analyst forecasts of Krispy Kreme’s earnings following the release of its February 3, 2002 financial statements. Through analysis of footnote disclosures on the Company’s joint ventures and repurchased franchises, you will identify potential problems with Krispy Kreme’s business outlook that were not discussed in the analyst reports.