Shares of Krispy Kreme (KKD) continue to roar higher, now up 14.4% premarket. The company's earnings report and guidance showed it to be firing on all cylinders as expansion doesn't cut away profitability. More than a few retail analysts are left wondering why Hostess Brands is languishing in bankruptcy, supposedly in part due to consumer distaste for sugary snacks, while Krispy Kreme is selling donuts coast to coast like wildfire.
Krispy Kreme (KKD) is teed up for a big gain after beating the estimates of analysts with its Q3 report. The company now has 16 straight quarters of positive comparable store sales to go along with profits on the rise and expansion plans still rolling out.
More on Krispy Kreme (KKD): Q3 beats across the board on an 8% gain in total revenue. Net earnings rose by 6.9% Y/Y on a like gain in same-store sales. The company also boosted its guidance, now expecting its FY13 EPS to be around $0.44 - 0.47, above Street estimates of $0.43. Shares +12.7% AH.
Quick service restaurants continue to play catch-up with leaders Chipotle (CMG) and Panera Bread (PNRA) as they try to subtly shift from "fast food" to "fast casual" and steal customers from sit-down alternatives. After McDonald's (MCD) set the bar high with premium coffee, smoothies, and reworked restaurants with HD TVs - nearly every chain has set in motion a modernization plan of its own.
As restaurant chains such as Dunkin' Brands (DNKN -0.1%), Yum Brands (YUM +1.0%), and Krispy Kreme (KKD 0.0%) prepare to ramp up growth in India, rival McDonald's (MCD +0.4%) could stumble out of the starting gate. A meatless menu in the nation is almost critical due to the Hindu and Muslim population, leaving McDonald's a target of protest groups despite revamping its lineup of food offerings to cater to local tastes.
Shares of Krispy Kreme Doughnuts (KKD +5.9%) rally off of the company's Q2 earnings surprise and minor boost in profit guidance. A healthy 5.4% gain in comparable-store sales was the headliner of the report, while moderating expenses also helped to lift results. On an earnings CC (transcript), execs note that concerns over commodity inflation has prompted the firm to already purchase flour and shortening for the first half of next year.
Shares of Krispy Kreme Doughnuts (KKD +4.6%) run up a gain after landing an initiation from Wedbush at Outperform to go along with the firm's lush price target of $9 on the stock. Next week the company reports Q2 earnings (preview).
Dunkin' Brands (DNKN -2.2%) and Krispy Kreme Donuts (KKD -0.4%) both trade lower with jokes abounding that the price action on the pair of stocks served as a nice leading indicator on the direction of Arena Pharmaceuticals' pending FDA approval for an obesity drug. Closer to the truth, it appears that ongoing concerns on the projected growth rates of the companies are in the forefront with an unsettled economy and the Starbucks juggernaut looming.
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.