NEW YORK (TheStreet) -- Wedbush upgraded Krispy Kreme Doughnuts (KKD - Get Report) to "outperform" from "neutral" and set a $24 price target. The firm said solid checks suggest sustained new unit growth.
The stock was up 4.83% to $16.29 at 9:31 a.m. on Monday.
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- KKD's revenue growth has slightly outpaced the industry average of 5.8%. Since the same quarter one year prior, revenues slightly increased by 0.8%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
- KKD's debt-to-equity ratio is very low at 0.01 and is currently below that of the industry average, implying that there has been very successful management of debt levels. To add to this, KKD has a quick ratio of 1.65, which demonstrates the ability of the company to cover short-term liquidity needs.
- KRISPY KREME DOUGHNUTS INC has improved earnings per share by 27.3% in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past year. We feel that this trend should continue. During the past fiscal year, KRISPY KREME DOUGHNUTS INC increased its bottom line by earning $0.48 versus $0.29 in the prior year. This year, the market expects an improvement in earnings ($0.73 versus $0.48).
- The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Hotels, Restaurants & Leisure industry. The net income increased by 20.7% when compared to the same quarter one year prior, going from $8.00 million to $9.66 million.
- You can view the full analysis from the report here: KKD Ratings Report