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Fired Up for Krispy Kreme Doughnuts

By Rich Smith - Apr 19, 2013 at 1:41PM

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A single downgrade does not a bad investment make.

A downgrade from a single analyst -- Wedbush -- was all it took to send Krispy Kreme Doughnuts (NYSE: KKD) rolling downhill earlier this week. But did investors overreact? Sure, the stock's more than doubled over the past year. True, it carries a higher P/E ratio than either Starbucks (SBUX 0.91%) or Dunkin' Brands (DNKN).

But as Motley Fool contributor Rich Smith explains, that's only the start of the story at Krispy Kreme. Click through to hear the rest -- and learn why even after a clean double, Rich thinks the stock's still worth buying.

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Stocks Mentioned

Starbucks Corporation Stock Quote
Starbucks Corporation
$71.93 (0.91%) $0.65
Dunkin' Brands Group, Inc. Stock Quote
Dunkin' Brands Group, Inc.

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