Krispy Kreme Doughnuts is about to release earnings results. Ponder the Bear Case Scenario:
America will one day wake up and ask why their Health care is so expensive. Especially stuff for Diabetes, Cholesterol and Heart Attacks. The legal finger will be pointed at the likes of Krispy Kreme. Big legal bills coming. Uncertain earnings to match and lots of crazy regulatory issues to comply with when you know they are guilty as sin.
Like most Quick Service outlets they are vulnerable to food commodity and labour wage inflation. These prices will never go down.
QSR is an ultra competitive forum with lots of spilt blood. Krispy Kreme does give a unique taste sensation. But others will as well.
George Gutowski writes from a caveat emptor perspective.