Dunkin Brands Group Inc (DNKN), Green Mountain Coffee Roasters Inc. (GMCR), Krispy Kreme Doughnuts (KKD): How Sweet Will Earnings Be?

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Still, one questionable move in the face of a soaring stock was Krispy Kreme’s decision in July to buy back $50 million in stock. With shares fetching almost 30 times forward earnings, some skeptical investors think the company is throwing away good money on an overpriced stock. Even though the space is full of fairly high-valued stocks, with Starbucks Corporation (NASDAQ:SBUX), Green Mountain Coffee Roasters Inc. (NASDAQ:GMCR), and Dunkin Brands Group Inc (NASDAQ:DNKN)’ all trading above 20 times forward estimates, it’s unclear whether Krispy Kreme Doughnuts (NYSE:KKD)’s growth prospects justify its even higher valuation.

In the Krispy Kreme earnings report, watch to see whether the company can show growth not only in doughnut sales but in other parts of its menu. Depending on its success in broadening its appeal, Krispy Kreme could easily see earnings rise much further in the years ahead.

The article How Far Can Krispy Kreme Earnings Rise? originally appeared on Fool.com and is written by Dan Caplinger.

Fool contributor Dan Caplinger has no position in any stocks mentioned. You can follow him on Twitter: @DanCaplinger. The Motley Fool recommends Green Mountain Coffee Roasters and Starbucks and owns shares of Starbucks.

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