Roth Capital Reaffirms Buy On Krispy Kreme Following 2Q14 Results

In a research report issued yesterday, Roth Capital analyst Anton Brenner reiterated a Buy rating on Krispy Kreme Doughnuts (NYSE:KKD) with a price target of $27, following KKD’s release of its second-quarter results.

Brenner wrote, “Total revenues in Q2 increased 6.9% to $120.5MM, ahead of our $118.6MM estimate. GAAP EPS equaled $0.08 vs. $0.07, below our $0,11 estimate. Same-store sales rebounded from its Q1 y/y decline with a 1.1% increase for company restaurants and a systemwide domestic comp increase of 2.8%. Company stores were lapping a strong 10.0% year ago sales gain. For the next four quarters, comparable year-earlier sales increases will be low single-digit increases. Accordingly, we anticipate some acceleration of same-store sales growth through 2H.” Brenner continued, “With much easier year-earlier comp comparisons ahead, we look for an acceleration in same-store sales growth in 2H. We expect that operating margins will improve on the positive sales leverage as well. Despite the Q2 EPS miss, we maintain our 2H revenue and EPS estimates.”

According to, which measures analysts’ and bloggers’ success rate based on how their calls perform, analyst Anton Brenner has a total average return of 9.7% and a 57.7% success rate. Brenner has a -4.3% average return when recommending KKD, and is ranked #867 out of 3277 analysts.

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