NEW YORK (TheStreet) -- Shares of Krispy Kreme Doughnuts (KKD) are gaining 2.3% to $17.80 after-hours on Wednesday after the doughnut maker beat analysts' estimates for earnings in the fiscal first quarter of 2016.

Krispy Kreme reported earnings of 24 cents a share for the fiscal first quarter, beating analysts' estimates of 22 cents a share for the quarter. Revenue grew 9% year over year to $132.47 million, below analysts' estimates of $136.99 million.

Domestic same store sales grew 5.2% in the fiscal first quarter, including a 4.3% increase at company stores.

The company updated its EPS estimates for fiscal 2016 to a range of 80 cents to 85 cents a share from its previous range of 79 cents to 85 cents a share. Analysts expect Krispy Kreme to report earnings of 84 cents a share for fiscal 2016.

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, good cash flow from operations and increase in stock price during the past year. We feel its strengths outweigh the fact that the company has had sub par growth in net income."

You can view the full analysis from the report here: KKD Ratings Report

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