Industry News | June 26, 2002

Krispy Kreme's Stock Receives an Upgrade

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Personal Investing: S&P STOCK PICKS & PANS

Analyst: Dennis Milton

Shares of the company have fallen more than 25% from their May highs. Trading at 48 times S&P's fiscal 2003 [Jan.] EPS estimate of $0.64, S&P believes the company's share price now more accurately reflects its growth prospects. The cash flow model, which assumes high, but declining growth rates over the next several years, values the shares at $32-$34. Store openings and strong same-store sales growth should continue to drive strong EPS growth of over 40% in fiscal 2003. S&P recommends holding current positions.

News and information presented in this release has not been corroborated by QSR, Food News Media, or Journalistic, Inc.