Krispy Kreme and Starbucks to Open Near 52-Week Highs

Krispy Kreme Doughnuts KKD and Starbucks SBUX reached new 52-week highs of $9.78 and $39.26 per share, respectively, in Tuesday's trading session. Krispy Kreme recently said it will be adding oatmeal, yogurt and fruit juice to its menu to better position itself to compete with rivals like McDonald's (MCD) and Starbucks. The Winston-Salem, North Carolina-based company operates a leading chain of doughnut outlets that includes some 650 locations throughout the United States and in about 20 other countries. It has a market cap of $657.1 million. Krispy Kreme has a long-term EPS growth forecast of 50.0% and a PEG ratio of 0.6. For the next two quarters and for the full year, the per-share earnings are forecast to be about double what they were a year ago. The stock has grown nearly 40% since the beginning of the year, outperforming Starbucks and the industry average, as well as the broader markets. Starbucks, which has seen recent success with its payment by cell phone system, is trading just shy of its all-time high of $40.01 per share from back in 2006. The Seattle-based company has a $29.4 billion market cap and is the world's largest specialty coffee retailer, with more than 16,000 locations in some 40 countries. The dividend yield is 1.3% and the return on equity is 27.7%. Its long-term EPS growth forecast is 17.8% and its P/E ratio is less than the industry average. Starbucks' share price has risen more than 22% year to date; the stock has outperformed the industry average, as well as McDonald's and the broader markets.