Reasonable assumption based upon the POTENTIAL for KKD intermediate and long term. They have really RE-BUILT this company over the last 3 years to a point where they are really JUST beginning to hit on all cylinders.
KKD Board and Management most likely know that if they execute this valuable BRAND will be a much LARGER BRAND in 3-5 years.
As far as take over potential - they have positioned themselves now to be a VERY attractive target. Well run...profitable...accelerating growth...great system and controls...strong management...
An acquirer has to look at the ROI and see that in 5 years an acquisition NOW would look mighty smart. The KKD Board and Management must look at the potential for $35 to $45 share price in 2-4 years as you state above and then figure out what a reasonable discount to the present it is worth today.