On Tuesday's Market Foolery, Mark Reeth, Motley Fool One analyst Jason Moser, and Million Dollar Portfolio analyst Michael Olsen discuss recent quarterly earnings reports from Dollar General (DG 1.74%) and Krispy Kreme (KKD +0.00%).
With Dollar General showing declining margins with sales up 6.8% and comparable sales rising 1.5%, Michael talks about the factors that affected the margins, including weather, competitors, and shifting to consumables. Jason then looks at the highs and lows of the earnings release from Krispy Kreme by first focusing on the good: the report was on time. Jason sees the company as a small fish in a large pond with competitors like Dunkin' Brands (DNKN +0.00%), Starbucks (SBUX 4.76%), and Panera Bread (PNRA +0.00%). Consumers, Jason notes, want more options than just doughnuts and coffee. He remains hesitant about the company in the long term and is staying clear of the stock. Michael compares Krispy Kreme to Dollar General in terms of their respective advantages. Looking at the global marketplace, Krispy Kreme has some challenges.
