[DesertCat]

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The Nikkei also announced a tie up with Lotte in Japan yesterday. Dunkin Donuts has been very successful here and has about 1500 stores. Interestingly, the Japanese franchaise often does better than its US counterpart. An example being 7-11 which eventually bought out the US parent company; however, that would be a ways down the road.

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Realize that Dunkin Donuts is, unlike Krispy Kreme, a tremendously successful franchise in the U.S. It has much higher margins and many more outlets than KKD. It has a real business model that works.

I'm not greatly worried that international expansion would save KKD's bacon, they need much more help than a few extra royalties can provide (and it takes time for new stores to roll). Lastly, a bad business model in the U.S. is probably a bad business model everywhere. Of course, if the Kuwaitis want to directly invest $100M in equity, then it doesn't matter if I am right, they will have more liquidity than my options will have lifespan. But I have to think that's unlikely, esp. once any "savior" sees their financials.

I'm really looking to read the analysis of someone who thinks KKD's existing business actually works (or can be quickly fixed), adequate liquidity, and will shortly create shareholder value in excess of today's price. That would directly contradict my thesis, and make my bets too risky.