Here's a quote from the CEO of Krispy Kreme Doughnuts (NYSE: KKD), Jim Morgan, on the company's latest quarterly results: "We are not satisfied with our financial results for the second quarter." That quote can be found in the earnings press release issued by the pastry maker earlier in the week. He's right. Things could be better.

Net sales for Q2 declined over 9%. The net loss for the quarter was $0.03 per diluted share. Granted, this was a vast improvement on a year-over-year basis. In last year's Q2, the red ink was pegged at $0.42 per diluted share (which included impairment charges and lease terminations to the tune of $0.35 per share). As I pointed out in my earnings preview, the expectation was for a loss of a penny.

Now, here's something interesting. When it comes to cash flow, Krispy Kreme actually did all right. On a six-month basis, management reported approximately $9.5 million in cash from operations. In the comparable period twelve months ago, the company generated $1.9 million from operations. But, you know, somehow I don't think the operational cash flow is going to do much for me this time around. When I gaze at the overall picture, see where this company has been and where it is now, look at the comps, etc., I can't say I'm moved to take it seriously as a potential investment idea. Obviously traders are having a ball with it. I can't, however, say that I even want to use it as a trading vehicle.