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Can You Lose A Ton Buying Krispy Kreme?

Lawrence Lewitinn
Talking Numbers
Can You Lose A Ton Buying Krispy Kreme?

Earnings on the doughnut-maker come out today. Is it time to stock up or put the doughnut down and step away from the counter?

If you bought Krispy Kreme a year ago, you would be 113% fatter.

Well, your portfolio would be. That’s how much the stock has moved in the past twelve months. In 2013 alone, your wallet would’ve grown nearly 39%.

Sounds great, but investors who bought the stock in 2003 would have starved. It’s dropped over 72% since that time and never fully recovered.

The doughnut-maker reports its earnings today to hungry investors. Analysts are expecting revenues for company to be close to $116 million for the first quarter of this year and earnings to be about $0.17 per share. Revenue growth was 8% from 2011 to 2012.

Meanwhile, there’s always worry the competition will be eating Krispy Kreme for lunch. Dunkin’ Brands, the owners of Dunkin’ Donuts, has revenues more than five times their Southern rival. Tim Hortons, the Canadian institution as venerated in the Great White North as the Hockey Hall of Fame or William Shatner, makes more in one quarter selling its (absurdly delicious) doughnuts and coffee than Krispy Kreme does all year.

With earnings coming out after the bell, could you end up losing a ton buying Krispy Kreme?

We ask Talking Numbers contributors Enis Taner, Global Macro Editor of RiskReversal.com, and Richard Ross, Global Technical Strategist at Auerbach Grayson, if now is the time to stock up or else put the doughnut down and step away from the counter.

To see what Taner and Ross have to say about where Facebook is headed next, watch the video above.