This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
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
TheStreet Open House

Krispy Kreme's Two Short of a Dozen

Stocks in this article: KKD WMT

NEW YORK (TheStreet) -- The plan was to buy two dozen Krispy Kreme (KKD - Get Report) doughnuts, and then use one dozen for a morning breakfast celebration and take the other dozen to our annual Super Bowl party, as a joke of sorts. It didn't work out that way.

Our teenage son, who swam three miles at a morning practice earlier that day, ate two or three on the ride home. The glazed doughnuts were still warm, just out of the oven, and that boy needed to replace some calories.

Admittedly, sugar-covered fried pieces of dough are not the healthiest way to go about doing that, but they were just out of the oven. Needless to say, no doughnuts made it to the Super Bowl party; it would have been odd to show up with the second box that by then was two short of a dozen.

"Two short of a dozen" is an appropriate description of Krispy Kreme's recent stock performance. Shares were hammered in early December, following the company's third-quarter earnings release. The quarter itself wasn't bad, but Krispy Kreme's earnings estimate for 2015 was short of analysts' estimates at the time and the company's stock suffered the consequences, falling 20% in one day.

Since then, the shares have continued to drift lower. They have fallen 36% since they reached a 10-year high in November.

Despite the drop, not much has really changed with Krispy Kreme. The company's turnaround remains intact, but the days of flying below investors' radar as the company had done following its near implosion in 2004-2005 until it began turning the corner the past four years are over.

The scrutiny is back, and at times so is the excitement that drove shares from $6 in June 2012 to $26.50 last November. Investors re-engaged with Krispy Kreme, and that renewed interest was not unwarranted given the company's renewed growth, solid balance sheet and improving margins. KKD Chart KKD data by YCharts

1 of 2

Check Out Our Best Services for Investors

Action Alerts PLUS

Jim Cramer and Stephanie Link 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

Jim Cramer's protégé, 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
Try it NOW
Try it NOW
Try it NOW

Check Out Our Best Services for Investors

Dividend Stock Advisor

Jim Cramer's protégé, 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
Options Profits

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

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
Try it NOW
Try it NOW
Try it NOW
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!

Markets

DOW 17,217.25 -169.96 -0.98%
S&P 500 2,005.77 -23.78 -1.17%
NASDAQ 4,645.9510 -35.5460 -0.76%

Partners Compare Online Brokers

Free Reports

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