This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

Sticking With Krispy Kreme

NEW YORK (TheStreet) -- Shares of donut-maker Krispy Kreme (KKD) have staged a solid comeback since a less-than-stellar second-quarter earnings report in late August gave the shares a one-day 15% haircut. That drubbing came after an earnings miss of 2 cents per share disappointed a growing body of Krispy Kreme investors, but the stock has gained back all that ground and more, and currently trades at a nine-year high.

The reasons for the growing excitement, and willingness to get past that less than stellar quarter, have to do with a few recent announcements that bolster the notion that Krispy Kreme is in growth mode. Two weeks ago, the company trumpeted its entry into the South American markets, with a deal to open 25 stores in Colombia over the next five years. Last week came the announcement of its first outpost into Singapore, with a 15-store franchise deal by 2017.

Clearly, this is not the 2000-era Krispy Kreme, which ultimately came close to crashing and burning. Today's Krispy Kreme is focused on international growth, especially in emerging markets. Some investors are surprised to find out that of the company's 790 total stores, 546 or nearly 70% are outside the U.S. Furthermore, management remains confident that it can grow its international store base to 900 by 2017.

Not that the company is struggling domestically. Last quarter represented the 19th-consecutive quarter of same-store-sales growth for company-owned stores. Krispy Kreme also is continuing attempts to make inroads into the coffee business, announcing a deal to sell its ground coffee in some of Walmart's (WMT) Sam's Club stores in the Southeast. We'll see how that goes. But the driving force for what has historically been perceived as a U.S. icon is growth from international franchising.

1 of 2

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
DOW 17,086.63 -26.91 -0.16%
S&P 500 1,987.01 +3.48 0.18%
NASDAQ 4,473.6970 +17.6810 0.40%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs