Equivalent store cost (considering 162 stores): $5.10 Million, wow! (I know, since some of the stores are franchised, this figure should actually be higher)
Per KK web site: Growth in 1998: 12.7%. Growth in 1999: 9.7%. Growth in 2000: 14.1%.
For 2001, let's say optimistically: 25%. Also, thereafter, optimistically (VERY) 25% year after year.
This year earnings per share estimate, $0.89; next year, $1.03 (per Yahoo, considering 12.9M shares).
OK, Krispy Kreme management finds a private buyer at these prices, and gets the full $827M for the company. KK puts the money in a CD @ 6.75% per year (available in several banks, and probably a conservative figure). "Profits" from the CD after one year: $55.82 Million. This is the equivalent of $4.32 dollars per share, for doing absolutely nothing but putting the proceeds from the sale in the bank!!
How many years until KK earnings are $4.32 per share?? Probably many, many years (to make matters worse, consider also the future increase in the number of shares dur to options). Oh, and also if you invest the $827 Million right now, and reinvest the interest every year, in all likelihood the $4.32 per share would increase year after year. KK wouldn't "catch" the same potential earnings in several years. Sure, it is normal for the earnings per share of a copmpany to be below the "bank equivalent", but KREM is about 1/5 the bank equivalent, certainly a lunacy for a company growing (optimistically) at 25% per year.
Longs thinking that the current prices of the stock are sustainable anywhere near its current value are more than fools. Sure, the price may not drop tomorrow, nor the day after tomorrow, but sooner rather than later it will, bigtime.