Roth Capital Remains Bullish on Krispy Kreme Doughnuts (KKD) Following 1Q16

Roth Capital reiterates a Buy rating and $27.00 price target on Krispy Kreme (NYSE: KKD) following 1Q16. KKD reported revenues of $132.5MM, below $137.0MM estimate. Adjusted EPS was $0.24 compared with Street consensus $0.22.

Analyst Anton Brenner commented, "Strong same-store sales are likely to be sustained, while less reliance on discounting should continue to bolster store profit margins. Domestic and international store expansion continues to increase at a double-digit rate. Several initiatives now underway seem likely to generate incremental store traffic as well as increase profit margins. We look for sustained rapid earnings growth for KKD over the next several years. We reiterate our Buy rating."

For an analyst ratings summary and ratings history on Krispy Kreme click here. For more ratings news on Krispy Kreme click here.

Shares of Krispy Kreme closed at $17.40 yesterday.

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