NEW YORK (TheStreet) -- Krispy Kreme (KKD) , due to report third-quarter financial results Tuesday, is not an easy stock to stomach. Part of the reason is due to rising competition in the doughnut and coffee trade from larger rivals Starbucks (SBUX) and Dunkin Brands (DNKN) .
At around $20, the stock is up 5% for the year to date compared with the nearly 12% rise in the S&P 500. Still, Krispy Kreme has rewarded patient shareholders with gains of 27.92% since we recommended the stock as a buy back in August.
Has the easy money been made? Yes. Should you buy shares anyway? Yes, and here's why.
As the Google Finance chart below shows, the stock has been on a roller-coaster ride in 2014.
The highest analyst 12-month target on Krispy Kreme is $27, according to CNN Money. This suggests gains of 30.94%. Even the median 12-month target of $24.50 can yield gains of 18.82%. Of course, the company has to execute its business in order to meet those price targets.