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Buy the donuts, but pass on Krispy Kreme (KKD +0.8%), writes Dimitra Defotis in Barron's. After...

Buy the donuts, but pass on Krispy Kreme (KKD +0.8%), writes Dimitra Defotis in Barron's. After more than tripling in the past year, the stock trades at 32x earnings and this morning announced a $50M buyback plan (vs. $20B completed in 2012), but perhaps the cash might be better put to work growing the business as this multiple leaves little room for error.
Comments (5)
  • when i look at Dunkin Donuts i see what Krispy Kreme should have been...and still can be. i think the "fast breakfast" segment is still the big winner "in the working world"...this is how we are going to diet in the modern age. i would be a buyer.
    15 Jul 2013, 03:20 PM Reply Like
  • may be you are right at this moment but you should have been buying stock for last few years so your wallet would have been fat instead of your belly. I am trying to cash my fat profit from buying KKD couple of years back $ 3.55
    15 Jul 2013, 07:12 PM Reply Like
  • Ever since (KKD) adopted (DNKN)'s plan to sell coffee and donuts, company has done well. (DNKN) doesn't make money on donuts. They make money on coffee and drinks.
    16 Jul 2013, 12:21 AM Reply Like
  • Senseless comments like this one by "Defotis" are the reasons people are reading less and less financial reports and publications because it is no more than options and useless jargon chatter.
    16 Jul 2013, 11:33 AM Reply Like
  • I've read some other total crap from "Mr.Defotis"...please pay no attention to his endless gloom & doom jargon...I have never seen his predictions pan out !!
    16 Jul 2013, 08:52 PM Reply Like
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