Krispy Kreme’s (DNUT) stock should be devoured by traders headed into the company’s earnings on Feb. 22 as it’s just too darn cheap, says EvercoreISI restaurant analyst David Palmer.
“Despite a volatile environment, Krispy Kreme continues to execute and move ahead with its growth plans,” Palmer said in a new research note.
The veteran analyst listed several key considerations for a bull case on the stock:
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“The company has bold goals for points of distribution based upon detailed analysis. The company is planning 10% annual growth in global points of access to 50k (10k today) with 10K+ planned in the U.S.
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Krispy Kreme sees its sales per U.S. hub increasing by 25% by 2024. Specifically, the company expects sales per hub to go from $3.8M last twelve months in the third quarter with a target to reach $5 million by 2024 (EVRe $4.7M) as hub and spoke markets mature.
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Consumers may not know what…
