During the past year, there has rarely been a dull moment following a Krispy Kreme earnings release. Following the first-quarter release in May, which contained better-than-expected results, shares jumped more than 21%. And following last year's third-quarter release, shares rose 23%. And so it goes with a company that had been all but forgotten just a few years ago -- and appears to be making the most of its second chance at life after nearly imploding. This rebirth, of course, comes with a price, especially once investors have re-embraced the story, which has sent shares up more than 300% in the past 16 months and 2,000% in the past five years. It is difficult to continually exceed ever-growing expectations, and the price for not doing so is very high.
KKD data by YCharts The balance sheet remains strong. The company ended the latest quarter with $67 million in cash and less than $2 million in debt. Shares trade for about 30 times the 2015 consensus estimate, a number that would typically make this value investor cringe. However, I continue to see great value in this brand and consider its current enterprise value of about $1.3 billion (based on yesterday's after hours closing price), to be a rather small price tag for an iconic brand that is back in growth mode. Don't get me wrong, however; this stock has been and will likely continue to be volatile, as some investors lock in their gains. The easy money has already been made, and value created from here will likely not happen quickly. Further progress depends on Krispy Kreme's international growth strategy, which calls for 900 international franchised stores by 2017, up from the current 563. I give Krispy Kreme a great deal of credit; the turnaround has been amazing to watch and participate in. At the time of publication, Heller was long Krispy Kreme. Follow @JonMHellerCFA This article is commentary by an independent contributor, separate from TheStreet's regular news coverage.