Dollars and Jens
Thursday, July 01, 2004
I just looked at the price of Krispy Kreme for the first time in a while. It's down to 22 times earnings. I haven't done a detailed analysis, but it looks like a pretty reasonable price to me.
Incidentally, they claim to have been hit by the low-carb diet craze. I can see that as an excuse for pasta sales being hurt, but how many people who were concerned about their weight were eating doughnuts before low-carb took off? I guess I'm presuming that low-carb has been a substitute for other diets, i.e., that the number of dieters hasn't grown. And I realize this isn't entirely true -- a lot of people are just thinking more about health than they once did. But it still amuses me.
Again, I haven't looked at it closely. Do as you will.