Krispy Kreme Doughnuts (
Analysts polled by Thomson Financial on average expected the company to break even.
Krispy Kreme’s stock is up nearly 20% as I write this. The only possible reason is the headline of a narrowing loss.
However, a quick scan of the numbers show that if it hadn’t been for general and administrative costs by more than half, to 5% of sales from 11% of sales, the story would be much different.
And that’s with a continued slide in sales. At the same time free cash flow and cash on hand continue to slide.
CEO Daryl Brewster, a candidate for this year’s Worst CEO, acknowledges there is still “much to do.”
The cookie — or in this case, the donut — continues to crumble.
The beat goes on…
Article written by Ted Gottsegen
Contributor at TheStockMasters.com
Disclaimer: The Author does not hold any positions or shares in the securities mentioned in this publication. 
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