To me, KKD looks like is hitting on all 8 cylinders. Stock is at $3.35. Yet the # of franchisees they’re signing up is impressive. The franchisee in AZ has expanded to 9 outlets vs. the last franchisee there that went out of busines a few years ago. KKD just announced a deal for 20 franchise Krispy Kreme retail shops in Thailand. I like the fact that KKD is doing a lot more traditional franchising; which is more of fee-based business with less risk. Plus, KKD should soon be solidly profitable; they got rid of their hydrogenated fats; and they have one of the most appealing names in the industry.
In summary, with stock under $3.50; locations and growing again; growing revenues; coming very close to breakeven on a gaap basis; emphasis on their “small retal concept;” rolling out new products such as wrapped snack products w/ longer shelf lives - total of 548 locations - $19.6 mill of cash - 67.4 mill shs o/s dilluted; I think the stock is a “strong buy” and easily $7.50 to $10 if Wendy’s or someone wants to buy them out.