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 (NASDAQ:SBUX) or Dunkin' Brands (NASDAQ: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.

Fool contributor Rich Smith has no position in any stocks mentioned. The Motley Fool recommends Starbucks. The Motley Fool owns shares of Starbucks. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.