Doubling in size in less than two years, it has expanded its outposts (retail stores) to 67 locations.
Forget Gold, the Gourmet-Cupcake Market Is Crashing
Emily Maltby and Sarah E. Needleman, Wall Street Journal, 17 April 2013 (hat tip: Big Picture)
After trading at more than $13 a share in mid-2011, Crumbs has sunk to $1.70. It dropped 34% last Friday, in the wake of Crumbs saying that sales for the full year would be down by 22% from earlier projections, and the stock slipped further this week.
Crumbs in part blamed store closures from Hurricane Sandy, but others say the chain is suffering from a larger problem: gourmet-cupcake burnout.
"The novelty has worn off," says Kevin Burke, managing partner of Trinity Capital LLC, a Los Angeles investment banking firm that often works in the restaurant industry...
"It's a short-term trend and we're starting to see a real saturation," he adds. "Demand is flat. And quite frankly, people can bake cupcakes."
There is some sort of cupcake shop in Raleigh, NC in a hip urban location on Glenwood Avenue. I have never been to it, but my wife and then ~ 6 year old son have. When they came home with their carefully packaged possessions, they looked like: cupcakes.
Seems somewhat limiting to me, but then that's probably what a lot of Portuguese probably said at first about trying to sail south along the African coast: "What for? There's nothing worthwhile down that way?"