I would not buy the Krispy Kreme stock for many reasons. First, the opening offer was 15.38 after a 52 week high price of 21.00. Although the price is currently above the 52 week low at 12.90, it does not show major profit or growth in the company. In the future, I am not sure how well this stock will perform. According to fool.com, the company didn't meet its sale projections, which led to a higher-than normal level of returns. This means that the demand of donuts from Krispy Kreme have decreased over the past year. The long term growth of this stock plans to increase, however. According to zacks.com, the long term growth rate is currently at 25% and the growth estimate for this year calls for earnings-per-share growth of 21.4%.
Sources:
- Kline, Daniel, "Starbucks and Panera Had a Great 2015, While Krispy Kreme Struggled," http://www.fool.com/investing/general/2016/01/12/starbucks-and-panera-had-a-great-2015-while-krispy.aspx, 2016 Jan 12
- Zachs Equity Research, "Is Krispy Kreme Doughnuts (KKD) a Great Growth Stock?," http://www.zacks.com/stock/news/178247/is-krispy-kreme-doughnuts-kkd-a-great-growth-stock, 2015 June 15
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