The company evaluates its revenue and cost shares in three areas: pertaining to
company stores, franchises, and manufacturing and distribution. Off-site revenues and
costs are components of company stores and franchises, as each location with
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doughnut-making machinery produces and supplies doughnuts to its local resellers. The
growth rates of cost and revenues for each area have been similar over the past four
years1 (see figures 2,3). Company store revenues and costs have decreased significantly,
manufacturing and distribution revenues and costs have decreased slightly, and
franchise revenues and costs have remained relatively stable.