Don't get me wrong. I like the company, the donuts, etc. etc.. But the p/e is way up there, the stock price is over-valued, most analysts say steer clear and KKD almost went bankrupt a year or so ago. Please tell me something I'm not seeing.
How do I love the, let me count the ways. 1. The forward PE is cheap, dirt cheap. Look at the future not the present 2. Analysts are jumping on board 3. Bankrupty, again look to the future not the past. Balance sheet continues to improve
Most importantly think about the brand value of the name and how the american public loves the comeback story
Turnaround story happening now. Great brand people still love and recognize krispy kreme despite its management issues from a few years back. The business and new management team has steered this ship out of bad waters and has positioned the business nicely returning to profitability and dcreased debt. PEG ratio is one of the best in the industry - price of the stock against future projected growth. Wall Street cares about the future not the past.
Stock has doubled in 2 months and expect another double within a year. The brand is just too strng, people love the donut, the issing ingredient was good management but KKD has a great group running it now . The business is in a great position finally.