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Krispy Kreme Doughnuts, Inc. Message Board

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  • fisk007 fisk007 Jan 14, 2013 2:00 PM Flag


    Price to Sales Ratio:

    Tim Hortons 2.42
    Starbucks 3.08
    Dunkin Donuts 5.45

    Average: 3.65

    Peets bought in July 2012 for 2.6 Times Sales

    A 2.6 Times Sales would be $16.80 per share +/- for KKD.

    A 3.65 Times Sales would be $23.65 per share +/- for KKD.

    That is why it would seem...SEEM to be a rather tough sell to give up control of this company for anything remotely below $15 to $16 per share. Especially at this juncture with the tremendous trajectory they have built and the opportunity ahead of them.

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    • Teavana acquired by Starbucks for $620 Million 3 months ago.

      Bought them for 2.7 times 2012 sales and 30 times earnings.

      Equivalent price for KKD would be $17 to $19 per share.

    • DNKN trading at 12 times book
      SBUX trading at 8 times book
      Tim Hortons trading at 6.6 times book

      KKD trading at 3.47 times book

      Still trading at a BIG discount to the others.

      The sins of 2002-2006 are apparently still not forgotten even though KKD is a completely revamped profitable growing machine.

      If DNKN, SBUX or THI were smart they would attempt to grab them before that valuation gap gets fixed by the market.

      Based upon price to book comps a double from here may be considered absolutely plausible.

    • Think Tim Hortons and Dunkin Donuts are the two most comparable.

      Even if you apply the low of the group of Tim Hortons 2.42 P/S

      ...that equals $16 for KKD.

      think that is exactly what the lower end of a reasonable valuation would be for a KKD takeover.

      The Krispy Kreme BOD - thru this Tax Asset Protection Plan - is making sure that the promise of KKD is not stolen at a very low price.

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