Dollars and Jens
Thursday, August 26, 2004
When You're Right 52% of the Time, You're Wrong 48% of the Time
Do you remember my comment that Krispy Kreme looked cheap? I sort of hope not:
Shares of Krispy Kreme Doughnuts fell as much as 17 percent after the company shocked investors by reporting a sharp drop in second-quarter earnings and warning that more of the same was on the horizon.They're still blaming low-carb diets, but not exclusively. It was around $19/sh when I pointed it out, and it's around $14 now.
Krispy Kreme (KKD: news, chart, profile) reported profit fell 55 percent to $5.7 million, or 9 cents a share, from $13 million, or 21 cents, in the year-earlier period. Revenue climbed 11 percent to $177.4 million from $159.1 million.
Operating costs, however, grew 30 percent to $11.8 million.