The company also raised earnings guidance for next year and is now expecting between 59 and 63 cents, up from 53 to 57 cents. The company ended the quarter with a total of 773 stores, 532 of which are international. Management believes that there's more growth on the horizon, projecting a total of 1,300 stores (900 international, 400 domestic) by January 2017.
Clearly, this is a new and improved Krispy Kreme, a far cry from the company that nearly imploded years ago. The stock is now trading at about 24 times 2015 consensus estimates, which may appear a bit rich, but perhaps not if the company can deliver on its growth plans. And therein lies the conundrum for the value investor who buys turnaround stories; when do the lines of growth and value cross? I've typically sold too early in such situations in the past, but I am holding onto this one at least for now. At the time of publication, Heller was long KKD. Follow @JonMHellerCFA This article is commentary by an independent contributor, separate from TheStreet's regular news coverage.