Wedbush Securities Believe Focus on Profitability Improves Visibility into EPS Trajectory for Krispy Kreme Doughnuts

In a report published Thursday, Wedbush Securities analyst Nick Setyan reiterated an Outperform rating and $24.00 price target on

. In the report, Wedbush Securities noted, "Believe upside to relatively low FY16 expectations exists, driven by pivot away from lower-margin transaction growth under new management team, consistent double-digit company-owned unit growth, accelerating franchisee unit growth, industry-leading intl. unit growth and share repurchases. Q4 EPS at high end of preannounced range, despite comp shortfall as management moves away from low-margin promotional activity. Adj. EPS of $0.17 was in line with our and the consensus estimates on co-owned SSS growth of 1.7% vs. 3.2% consensus." Krispy Kreme Doughnuts closed on Wednesday at $20.35.