NEW YORK (TheStreet) -- Krispy Kreme Doughnuts (KKD) closed the day up 2.4% ahead of its fourth-quarter earnings report. Immediately following the earnings release, the shares skyrocketed 8.7% to $19.88.
Krispy Kreme reported that same-store sales increased for the twenty-first consecutive quarter by 1.6%. When excluding the costly refranchising of six stores, total revenue increased by 4.3% and profits climbed to $14.8 million, or 21 cents a share.
Krispy Kreme also announced expansion into the Asian market with the first of 35 planned stores opening in India, the first of 50 planned stores opening in Taiwan and the first of 23 new stores opening in China's bustling Guandong Province.
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Krispy Kreme has seen its shares move at least 15% in four of the last five quarters following the filing of its earnings reports. The Doughnut and coffee retailer has seen success recently despite stiff competition from rivals Dunkin' Donuts (DNKN) and Starbucks (SBUX).
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."