Krispy Kreme jumps as strong doughnut sales drive profit (Global Markets) - Krispy Kreme Doughnuts Inc's (KKD.N) shares rose 13 percent on Friday, a day after the company posted a higher second-quarter profit on strong domestic demand for its doughnuts and sweet treats.Stock Market Predictions
The company, known for its signature glazed doughnuts, has been tweaking its menu and opening new stores to drive sales. It is currently adding more coffee-based beverages and other savories to its menu.
The company will soon launch different types of revamped drip coffee later this month. "12 months from now, updates to coffee-based specialty drinks will roll out," Janney analyst Mark Kalinowski said in a note to clients.
"We believe that it would make a lot of sense for this to include something akin to Starbucks' (SBUX.O) Frappuccino lineup of blended beverages," analyst Kalinowski said.
The company, which competes with Dunkin' Donuts (DNKN.O), also posted better-than-expected quarterly sales.
Krispy Kreme shops can be found in over 660 locations in the U.S. and 20 countries around the world.
The company's shares touched a high of $8.86 on Friday morning on the New York Stock Exchange.
(Reporting by Meenakshi Iyer in Bangalore; Editing by Viraj Nair)
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