I avoid putting exact numbers to stuff. Mr. Market is just SO unpredictable. What I try to do is just be sure I know the general direction of what I own. My belief, at present, is the KKD's general direction is to the UPPER RIGHT. :-) Makes for a less stressful life :-)
I thought they'd go the dividend route, this buyback catches me by surprise. I like it. The amount, etc is irrelevant! As noted above, this is a huge signal to the market that the business has turnaround and confidence is WAY up.
Although I am fine with this buyback, I have to admit that I'd rather have seen them take another wack at the debt instead. This move tells me that debt level is where they want it... that part I am not happy with.
Money is very cheap at the moment, so probably prudent leverage at present is a smart move. Remember Jim is an X banker, so he knows his way around money. Their cash generation is significant, would not be surprised if they also paid some of debt down later in the year. I much prefer buybacks to dividends, if the stock is attractively priced, and I believe KKD is.
it is better to retire debt.then looks like management took the action to counter downgrade move.this will give a floor to kkd and they may not even use all of that money to buy stock.see how shorts are going crazy on this board.btw r they paid by that down grader or he himself posting all the crap.
Thank you Jim and team!!!!!!!!!!
Fantastic move, and sort of thought tis might be coming!!!!!!!!
"This share repurchase authorization is an indication of Krispy Kreme's financial strength as well as our positive outlook for the future," commented James H. Morgan, Jr., Chairman and CEO. "Over the past several years, we have substantially improved our performance and strengthened our balance sheet, and are confident that we have the capital resources to implement and support our growth plans. This authorization is also consistent with our ongoing commitment to enhance long-term returns to our shareholders."