It wasn't entirely unexpected, but Krispy Kreme Doughnuts (NYSE:KKD) reported first-quarter results, with the most daunting element being a net loss related to the abrupt shuttering of its Montana Mills operation, an entity it purchased a little over a year ago. However, some investors might be thinking the stock's hit bottom, as the price sprang a little higher in recent trading.

When you exclude the loss resulting from the Montana Mills closure, Krispy Kreme reported first-quarter earnings of $14.3 million, or $0.23 per share, which matched its reduced expectations. On a more upbeat note, total revenues increased 24% to $184.4 million. Same-store sales eked out a 4% increase, overall, while company store sales were up 5.2%.

However, Krispy Kreme did say it's cooling down on the expansion front, cutting the number of outlets it plans to open this year to 100 from 120.

Krispy Kreme's been a hot topic here at the Fool, since we've hosted quite the duel during the days following the company's warning. Rick Munarriz provided a cautiously optimistic stance, and Bill Mann penning a view that is downright cautious. Meanwhile, the "Hot" light is on at the Krispy Kreme discussion board, where investors have been exchanging opinions as to whether it's time to buy, sell, or hold this Motley Fool Stock Advisor stock.

Despite today's recent tentative increase in stock price, it's little consolation, considering the stock has fallen 37% in recent weeks, ever since it warned of coming disappointment.

Personally, I'm not convinced that Krispy Kreme's niche in doughnut decadence is a thing of the past. As I've said before, I've been wondering if the mass appeal of low-carb dieting is beginning to subside, as most diets that reach the officially crazed "fad" status do.

However, were I to consider sampling shares of this doughnut purveyor, it seems pretty prudent to give some time to look for recovery, and to carefully track some of the hints that things may not be as they seem. As much as profits down the road could be sweet from these levels, right now it seems like one risky sugar rush.

Krispy Kreme is a Motley Fool Stock Advisor pick. Want to know what other stocks Foolish co-founding brothers David and Tom Gardner are recommending? Try it out for six months, without risk.

Alyce Lomax does not own shares of any of the companies mentioned.