Iconic donut maker Krispy Kreme (NASDAQ: DNUT) announced its second-quarter financial results, which showed progress in the company's implementation of its hub and spoke business model. However, the market frowned on the report, and the shares fell. They're now down 37% from its IPO last year. What gives?
For years, Krispy Kreme operated bake shops where customers could go to get their donut fix. The company found that the primary reason customers didn't buy more donuts was that they had to travel too far for the treats.
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