Track the companies that matter to you. It's FREE! Click one of these fan favorites to get started: Apple; Google; Ford.



Why Krispy Kreme Shares Popped

Watch stocks you care about

The single, easiest way to keep track of all the stocks that matter...

Your own personalized stock watchlist!

It's a 100% FREE Motley Fool service...

Click Here Now

Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.

What: Shares of Krispy Kreme Doughnuts (NYSE: KKD  ) were coming hot out of the fryer this morning, rising as much as 26% on a strong earnings report.

So what: The once-beleaguered stock posted adjusted earnings per share of $0.12, above estimates of $0.08, and delivered a same-store-sales jump of 6.8%, the 16th quarter in a row with positive comps. Operating income at company-owned stores was dramatically improved, going from a loss of $574 million to a net of $2 million. Perhaps more reassuring to investors was the increase in full-year EPS guidance to $0.44-$0.47 and $0.49-$0.55 for the next fiscal year.

Now what: After its stock collapsed several years ago, the doughnut vendor has quietly reinvented itself by franchising abroad. International stores now deliver more than half of the company's operating income, and the company is quickly expanding overseas with 75 more stores expected next year. The 26% jump today may be a little overeager and the valuation seems priecy for a recovering brand, but shareholders can take in comfort in knowing the company is at least moving in the right direction.

Don't miss the next fresh batch of news. Add Krispy Kreme Doughnuts to My Watchlist.

Read/Post Comments (0) | Recommend This Article (0)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

Be the first one to comment on this article.

Compare Brokers

Fool Disclosure

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 2122161, ~/Articles/ArticleHandler.aspx, 5/25/2016 1:40:18 AM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...

Jeremy Bowman

Fool since 2011. I write about consumer goods, the big picture, and whatever else piques my interest. Follow me on Twitter to see my latest articles, and for commentary on hot topics in retail and the broad market.

Today's Market

updated 4 hours ago Sponsored by:
DOW 17,706.05 213.12 1.22%
S&P 500 2,076.06 28.02 1.37%
NASD 4,861.06 95.27 2.00%

Create My Watchlist

Go to My Watchlist

You don't seem to be following any stocks yet!

Better investing starts with a watchlist. Now you can create a personalized watchlist and get immediate access to the personalized information you need to make successful investing decisions.

Data delayed up to 5 minutes

Related Tickers

5/24/2016 4:02 PM
KKD $21.54 Up +0.19 +0.89%
Krispy Kreme Dough… CAPS Rating: **