NEW YORK (TheStreet) -- Krispy Kreme Doughnuts (KKD) shares are down 5.8% to $16.59 on Wednesday after reporting adjusted second quarter earnings of 13 cents per diluted share, 2 cents short of analysts expectations.
Revenue for the quarter increased 7% to $120.5 million, ahead of analysts guidance of $118 million.
The company also reported a 2.8% growth in same store sales during the period over the previous year and expects to increase the number of its stores by 10% next year.
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 some important positives, 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, impressive record of earnings per share growth, compelling growth in net income and reasonable valuation levels. We feel these strengths outweigh the fact that the company has had lackluster performance in the stock itself."
Highlights from the analysis by TheStreet Ratings Team goes as follows: