NEW YORK (TheStreet) -- Krisy Kreme (KKD) will enter the wholesale club channel by stocking its branded packaged ground coffee at a trial number of Sam's Club stores in the Southeast. Sam's Club, a division of Wal-Mart (WMT), is a membership-only retail club with 621 warehouses in the U.S. and Puerto Rico.
"The club channel is a natural extension for the brand," said Krispy Kreme Senior Vice President Brad Wall in a statement.
Krispy Kreme has also signed a licensing agreement with brand consultancy firm Brand Central to further develop its coffee products for the wholesale club market.
"These new initiatives are part of our ongoing strategic efforts to significantly build awareness and equity in our coffee program through trial and sales of our existing products in new channels," said Wall.
On Friday, Krispy Kreme shares jumped 7.08% to $22.68, despite no news of note. Share growth leveled off on Monday, closing trading at $22.80. In the year-to-date, shares have surged 143%.
TheStreet Ratings team rates Krispy Kreme Doughnuts as a Buy with a ratings score of B. TheStreet Ratings Team has this to say about their recommendation:
"We rate Krispy Kreme Doughnuts Inc (KKD) a BUY. This is driven by a number of strengths, 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 sub par growth in net income."