Don't Be 'Cruller': Krispy Kreme (KKD) Slumps Following Mixed Results; Peers on Watch

August 30, 2013 10:53 AM EDT Send to a Friend
Krispy Kreme Doughnuts (NYSE: KKD) shares are lower Friday following a Q2 miss reported Thursday night.

While comparable-store sales improved 10 percent in the quarter, Krispy Kreme posted Q2 EPS of 14 cents, while the Street was looking for a report of 15 cents.

Peers that traders are watching today include Dunkin' Doughnuts (Nasdaq: DNKN) and, to some extent, Tim Hortons (NYSE: THI), Einstein Noah (Nasdaq: BAGL), and Panera Bread (Nasdaq: PNRA). The latter two focus more on sandwiches, wraps, and other items beyond doughnuts, which might not provide for a direct comparison.

CEO Jim Morgan was on CNBC this morning and commented that, while pressure to innovate is rising, he sees Krispy Kreme still being able to compete on a high level without too many changes. In addition, Morgan thinks that the company is a great, little indulgence for most, which isn't skewed too much whether times are good or bad.

Shares of Krispy Kreme are down 14 percent. The stock was near a 52-week high heading into results, so a little profit taking might be going on here as well.

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Krispey Kreme
Chuck on 2013-11-04 03:34:03
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I find their donuts too sweet for my taste.

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