This Day On The Street
Continue to site
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

Why Krispy Kreme (KKD) is Leading Market Losses

NEW YORK (TheStreet) -- Krispy Kreme (KKD - Get Report) was plunging in Tuesday trading, following reporting mixed third-quarter results and conservative guidance a day earlier.

For the quarter ended Nov. 3, $114.2 million in revenue missed estimates by $420,000, according to analysts surveyed by Yahoo! Finance. Net income of 16 cents a share beat consensus by a penny. Same-store sales grew 3.7%, the twelfth consecutive quarterly increase.

Mediocre earnings aside, it was Krispy Kreme's underwhelming forecasts which turned Wall Street off. The Winston-Salem, N.C.-based business adjusted its fiscal 2014 guidance to between 60 cents and 63 cents a share, in line with analyst estimates of 63 cents a share.

Fiscal 2015 earnings in the range of 71 cents to 76 cents a share missed a 77-cent consensus. Though sales at domestic stores are expected to continue growing in 2015, the company expects international franchise same-store sales to decline, as the brand has experienced substantial global growth over the last few years.

Must Read: Yum! Brands (YUM) Sees a Strong Bounceback in 2014

The doughnut chain had plummeted 18.8% to $20.93 by midday. However, appetite for the stock has been strong through 2013, pushing share price 114% higher.

Halfway through the trading day, 6.3 million shares had changed hands, more than 7 times the three-month average daily trading volume.

TheStreet Ratings team rates Krispy Kreme Doughnuts Inc as a Buy with a ratings score of B. The team has this to say about their recommendation:

"We rate Krispy Kreme Doughnuts Inc (KKD) a BUY. This is driven by some important positives, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its revenue growth, largely solid financial position with reasonable debt levels by most measures, good cash flow from operations and solid stock price performance. We feel these strengths outweigh the fact that the company has had somewhat disappointing return on equity."

Also see : The  10 Drunkest States   in America... and the  10 most sober .

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

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
Stocks Under $10

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

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

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
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
KKD $16.93 0.00%
AAPL $95.18 0.00%
FB $117.43 0.00%
GOOG $692.36 0.00%
TSLA $232.32 0.00%


Chart of I:DJI
DOW 17,750.91 -140.25 -0.78%
S&P 500 2,063.37 -18.06 -0.87%
NASDAQ 4,763.2240 -54.37 -1.13%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs