Krispy Kreme (NYSE:KKD), maker of the tasty glazed goodies that keep sugar-lovers happy, baked up some yummy second-quarter results. Higher systemwide and same-store sales and a big jump in net income were highlights for the quarter ended August 3.

Systemwide sales, which include revenues from franchises and company-owned stores, grew 27.6% to $238.5 million. Sales at company-owned stores grew fastest, zipping up 39.6% to $104.3 million, while sales at franchised stores jumped 19.6% to $134.2 million. Systemwide same-store sales were up an impressive 11.3%.

Net income for the second quarter rose 46.8% to $13 million from $8.9 million. Earnings per share came in at $0.21 a diluted share vs. the prior year's $0.15.

Krispy Kreme's story continues to be its compelling growth prospects. With just 307 locations in 41 states, Canada, and Australia (and soon, London, England), the whole world awaits Krispy Kreme. The company will add 77 new stores and 10 coffee/doughnut shops for fiscal 2004.

Comparisons to a young Starbucks (NASDAQ:SBUX) are not without basis. As highlighted in our Starbucks retrospective today, the coffee king boasted around 1,700 locations five years ago. Today, there are more than 6,500 Starbucks, and its market capitalization has more than doubled in five years. It's not hard to imagine Krispy Kreme cooking up a similar future.

Little wonder investors are used to paying a premium for Krispy Kreme, which trades at a lofty P/E, just as Starbucks always has. Krispy Kreme goes for about 52 times management's updated fiscal 2004 earnings estimate of $0.91. Like Starbucks, the market may never give wary investors a more "reasonable" chance to get into Krispy Kreme. If not, many will be left on the sidelines watching this growth story unfold.

LouAnn Lofton owns shares of Starbucks, but not Krispy Kreme. She does, however, love Krispy Kreme's doughnuts and is craving some right now. Why not pull up a doughnut and help us celebrate our 10th anniversary with 10 Ways to Make More Money Now!