Krispy Kreme Doughnuts (KKD) changed management, and the company is now implementing a turnaround strategy to increase store traffic and to reinvigorate the brand, says Will Slabaugh, Vice President and Equity Research Analyst at Stephens Inc.
“Krispy Kreme has been our best idea for 2013 and continues to be. I think there is still a lot of upside to both estimates and valuation,” Slabaugh said. “I think this story is still in the early innings of really turning the brand around and becoming a high-class growth story. I think it’s going to raise a lot of eyebrows if you start to see domestic units accelerating at a much faster pace.”
Slabaugh says traffic is already growing for KKD, and it seems to continue. He says not many analysts follow this stock anymore, but he continues having the name as one of his favorites in QSR.
“The past few quarters have provided a traffic growth of over 6%, over 8%, and I think a lot of that traffic growth is continuing into this current quarter, so that’s been extremely impressive. It’s an old brand, but it’s one that has been really reinvigorated recently, and I think you will see a lot more unit growth out of that company going forward,” Slabaugh said.
FOR MORE INFORMATION ABOUT THIS INTERVIEW CLICK HERE.
Krispy Kreme Doughnuts (KKD) New Management Accelerates Unit Growth, Increases Customer Visit Frequency
March 20, 2013
Krispy Kreme Doughnuts (KKD) Sees New Unit Returns Approach Industry Highs
March 20, 2014
Enduro Royalty Trust (NDRO) Expected to Turn Distribution Around and Strongly Appreciate
May 06, 2013
Wal-Mart Stores, Inc. (WMT) Too Big a Ship to Turn Around to Recover Market Share
January 06, 2016
Waste Management (WM) Turns Business Around and Becomes ESG Leader in Waste-to-Energy
November 06, 2012
