Dallas, Texas 12/04/2013 (Financialstrend) – 2013 has definitely been a good one for the doughnut business. It seems like the country has rediscovered this delectable goody and the sugar treat is definitely a great way for many to start their day. Of course, no one is counting calories here and the taste buds are reigning supreme. And the doughnut companies like Krispy Kreme Doughnuts (NYSE:KKD) are not complaining any and why should they? It is boom time for them.
Just last night, Krispy Kreme Doughnuts (NYSE:KKD) reported a profit of 9-cents per share on revenues of $114M for its financial 3rd quarter. There was a 3.7% rise in same-store-sales which marked 5 consecutive years of growth. The company’s shares have also risen more than 850% since it embarked on its winning streak 20 quarters back and it has risen almost 150% in this year alone.
And so, when the company drops 20.20% in one single day, it is definitely something that sets you wondering. The only plausible explanation is the current volatility in the market for everything that has the prefix ‘consumer’ attached to it. The downtrend in the economy has made it very difficult for people to maintain the kind of lifestyles that they have been accustomed to. This also means that there will be phases when they give up some products and the ones to go first are the ones that are not really considered to be a necessity. In any case, Krispy Kreme Doughnuts (NYSE:KKD) will surely bounce back soon enough.
Tuesday’s trading
In Tuesday’s trading session, Krispy Kreme Doughnuts (NYSE:KKD) dipped by 20.20%. The shares had an opening price of $20.60, which rose to the intraday high of $21.30 and headed to close at $19.59. Around 13.49 million shares were exchanged on Tuesday and an average-volume of 0.846 million shares were exchanged over 30 days. The company has a market capitalization of $00.00 billion.
