Why I Like Krispy Kreme $KKD

Takeaway: This is an excerpt from a recent research report from Hedgeye restaurants analyst Howard Penney.

We like the Krispy Kreme story.  

 

Why I Like Krispy Kreme $KKD - kkd1

 

KKD is a small cap growth company with a growing global footprint and the potential to double in size over the coming years. 

 

It’s also a volatile stock that will see large swings in sentiment given the company’s checkered history.  That being said, we believe it’s very likely KKD will wind up in the hands of a bigger company.  The company’s aggressive growth plans and strong balance sheet make it an attractive acquisition target for a foreign company.

 

$18.16 is long term TAIL support KKD. I like it if that holds.

 

(Click here to watch Penney video, "Why You Should Short Casual Dining Stocks")

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