What: Shares of Krispy Kreme Doughnuts (NYSE:KKD) rose a mouthwatering 10.8% in June, according to S&P Capital IQ data. The move followed Krispy Kreme's delicious fiscal first-quarter earnings and helped the doughnut maker narrow the considerable performance gap in recent months between it and the S&P 500 so far in 2015.

KKD Chart

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So what: Krispy Kreme has since given up some of those gains, which isn't terribly surprising, considering its report was technically mixed. On one hand, quarterly revenue rose 9% year over year to $132.5 million, below analysts' expectations for revenue of $133.3 million, and driven almost entirely by a 17.3% increase in Krispy Kreme's store count. Meanwhile, though domestic same-store sales rose a solid 5.2%, international franchise same-store sales declined 1.7%.

On the other hand, Krispy Kreme was able to translate those sales into 5% growth in adjusted net income to $16.6 million, or $0.24 per share. Wall Street, for its part, was modeling significantly lower adjusted earnings of $0.19 per share. To be fair, Krispy Kreme owes at least part of its outperformance to its decision to buy back 391,300 shares of stock for $7.4 million, of which $5.9 million was settled during the quarter.

According to Krispy Kreme CEO Tony Thompson, "We continue to believe that Krispy Kreme is positioned well for earnings and cash flow growth and our intention is to return a portion of that to shareholders through ongoing share repurchases."

Now what: Krispy Kreme also raised the bottom end of its previous full-year earnings guidance by a penny per share, resulting in a new per-share range of $0.80 to $0.85. However, note that analysts' consensus currently calls for Krispy Kreme to achieve earnings at the high end of that range, perhaps in part because of its remaining buyback authorization and recent propensity for under-promising and over-delivering. As a result, with Krispy Kreme already trading at a generous valuation (relative to its growth) of 41 times trailing 12-month earnings and almost 20 times next year's estimates, I remain content watching this one from the sidelines.