Krispy Kreme Doughnuts (KKD)

Improve in NumbersFree cash flow has fortunately been positive recently with $18 million in 2007 and $8 million in the TTM. The balance sheet is also adequate with $23 million in cash and $54 million in other current assets reported. This total of $77 million in total current assets yields a current ratio of 1.69, an 'acceptable' current ratio imho. The company is reported to have an additional $114.7 million in long-term liabilities.

Hands down they are the best donuts out there. I was heavily invested in this company in early 2000 and rode the way of stock splits. I got out on a very positive note, but guess what, I am back and buying the stock as much as I buy the donuts every morning! Once the company begins to understand they need to open the gates to more franchises in smaller markets, they will continue to build strong growth on their brand loyalty. America buy the stock because they offer a taste that you just can't deny!!

Great International exposureThese stores also offer an array of coffees and other beverages. As of January 28, 2007, there were 395 Krispy Kreme stores operated system wide in 40 states in the United States, Australia, Canada, Hong Kong, Indonesia, Japan, Kuwait, Mexico, the Philippines, South Korea, and the United Kingdom, of which 113 were owned by the company and 282 were owned by franchisees.