Its doughnuts, available for many years only in the Southeast, had attracted a devoted, even fanatical, customer base. When the company decided to go national, it opened franchises in locations guaranteed to generate buzz
—Manhattan, Los Angeles, Las Vegas —and customers lined up around the block. By August 2003, KKD was trading at nearly $50 on the New York Stock Exchange, up 235 percent from its initial public offering price of $21 on Nasdaq, and Fortune magazine was calling Krispy Kreme the “hottest brand in the land.” For the fiscal year ended in February 2004, the company reported $665.6 million in sales and $94.7 million in operating profit from its nearly 400 locations, including stores in Australia, Canada, and South Korea. —Kremed! (CFO.com)
Wait a minute… $21 x 2.35 = 49.35, so “nearly $50” is accurate. But “up 235%”?
$21 x 1.00 = $21, but I wouldn’t say “trading at $21, up 100% from its initial public offering price of $21.”
I’d bet dollars to doughnuts that should read “up 135%.” Am I wrong?