Speculation of a potential buyout offer for Krispy Kreme has surfaced in recent weeks, in part because management, led by top executive Jim Morgan, has done a remarkable job of bringing the company back from the corporate abyss to sustainable profitability. It is on pace for a third consecutive profitable year.
Longbow Research, an asset-management firm, launched its coverage of Krispy Kreme stock in January by estimating the stock could reach a $15 target price – a level it hasn't seen in 8½ years.
As a result, analysts are pondering whether an offer too good to turn down could come this year. Krispy Kreme has not responded to questions about the potential for receiving a takeover offer.