NEW YORK (TheStreet) -- Shares of Krispy Kreme Doughnuts (KKD) were falling 4.1% to $19.35 in after-hours trading Tuesday after the doughnut shop company missed analysts' estimates for earnings and revenue in the third quarter.
Krispy Kreme Doughnuts reported earnings of 18 cents a share for the third quarter, below analysts' estimates of 19 cents a share. Revenue grew 7.6% year over year to $122.9 million for the quarter, below analysts' estimates of $124.35 million.
The company said that domestic same store sales increased 3.7% in the quarter, including a 3.3% gain at company shops. Constant-currency international franchise same store sales fell 2.9% in the third quarter.
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 multiple strengths, 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, growth in earnings per share, good cash flow from operations and compelling growth in net income. We feel these strengths outweigh the fact that the company shows low profit margins."
You can view the full analysis from the report here: KKD Ratings Report