Shares of Krispy Kreme (KKD) are down 16.3% in pre-market trading after the company's FQ3 results and FY15 guidance failed to live up to sky-high expectations, but Janney Capital's Mark Kalinowski reiterates a Buy rating and $30 PT. He observes "As it turns out, seven domestic franchisees grew their same-store sales by 20% or more."
Stephens joins Janney on the defense with an Overweight rating and a raised PT to $25. The firm cited across-the-board acceleration despite the quarter's company-owned same store sales miss.
Krispy Kreme (KKD) shares fall 8.6% in AH trading on the back of a one cent EPS beat and miss on the top line in FQ3. The results and subsequent reaction appear thus far to be a deja vu of FQ2, when investors who had priced shares to perfection sent them plunging following a mixed quarter.
Comparable same store sales rose 3.7% Y/Y, the 12th consecutive quarterly increase, driven "principally by retail price increases."
Domestic franchise revenue grew 20% to $3M, driven by higher royalties; international franchise revenue was up 3% to $6.2M for the same reason.
Management bumped its FY2014 EPS range to $0.60-$0.63 from $0.59-$0.63 (vs. analyst consensus of $0.63). FY2015 EPS is seen at $0.71-$0.76 (below consensus of $0.77). KKD expects to open 10-15 company stores, 20-25 domestic franchises, and ~85 international franchises in FY2015.
Restaurant analysts think fast-food chains might be going too far with limited time offerings as consumer interest shows signs of sagging.
Though particular items such as the Starbucks Pumpkin Latte, Wendy's Pretzel Bacon Cheeseburger, and the timeless McRibs offering from McDonald's are profit drivers, the majority of offerings aren't working.
Not even the high-profile chicken wing test by McDonald's is moving the meter as consumers find the high prices don't offset the novelty, reports Burger Business.
Shares of Krispy Kreme Doughnuts (KKD +4.3%) are now up a double-digit percentage over the last two days without any concrete news of note.
Unless there is some strong correlation between government workers being idled and doughnut consumption, the best bet is that Krispy Kreme may be working its way back into a status as a momentum favorite with traders.
Rhinoish+ FollowFollowing- Unfollow|Send Message3 Jun
oh $KKD, always oversold or overbought, never boring
Jun 3, 3:21 PM
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wigit5+ FollowFollowing- Unfollow|Send Message3 Jun
Have bids to buy $KKD at $16 and to sell puts on the name at $16 August expiry
Jun 3, 12:28 PM
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Krispy Kreme Doughnuts Inc is a branded retailer and wholesaler of doughnuts, complementary beverages and treats and packaged sweets. The Companys shops are operated under the trademark doughnuts such as Krispy Kreme and Original Glazed.