Why Krispy Kreme Doughnuts (KKD) Is Gaining Today

NEW YORK (TheStreet) -- Krispy Kreme Doughnuts (KKD) was gaining 8.6% to $21.59 in after-hours trading Wednesday after raising its fiscal 2015 outlook and despite missing analysts' estimates for earnings and revenue.

For its fiscal fourth quarter the doughnut maker posted earnings of 12 cents a share, missing analysts' estimates of 13 cents a share by one cent. Revenue dropped 4.6% to $112.7 million. Analysts surveyed by Thomson Reuters expected earnings of $119.6 million.

Same store sale rose 6.7% in fiscal 2014. That's the fifth consecutive year of increasing same store sales according to CEO James H. Morgan, that's even through the severe winter storm near the end of the fiscal year that ended on February 2, 2014.

Looking forward to fiscal 2015 the company expects earnings to increase by about 20% to 30% for the year.

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TheStreet Ratings team rates KRISPY KREME DOUGHNUTS INC 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 several positive factors, 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, reasonable valuation levels, solid stock price performance and increase in net income. We feel these strengths outweigh the fact that the company has had somewhat disappointing return on equity."

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