Krispy Kreme Doughnuts (NYSE: KKD) reported results for the second quarter on Thursday after the bell. I haven't been a huge fan of this company, but I will concede that some of the data in the release is interesting. Maybe even encouraging.

The same-store sales went up 5.9% -- they were terrible last year at this time. Same-store sales are, as we all know, a very key metric for a business like Krispy Kreme. And the performance served as a positive counterargument to the 12% decrease in the top line.

Krispy Kreme Doughnuts' (NYSE: KKD) stock has had a nice run of late. It's doubled so far on the year-to-date frame. Is there something to this story? Before, there was nothing. Krispy Kreme has been a very troubled business, and it would be very difficult to convince me otherwise. But, have things changed?

Well, net income did drop in Q1. Krispy Kreme said it made t $0.03 per share. Last year at this time, the doughnut guru earned $0.06 per share. Although the profit decline isn't attractive, I liked the comps. Same-store sales at company locations increased over 2%.

The clock is ticking and the pollsters are bouncing around faster than ever with varying results. My latest wager was not on a stock, but a box of 24 doughnuts with a friend who thinks McCain will win the election.

Given the post-Palin slide of the McCain campaign we have been hearing about for the past six weeks, I thought this was a sure thing. Then we learn -- not so fast folks! -- things can change.

Presidential Race Tightens, AP Poll Says Wow, I'll say, they can change. Is this a case of "better the devil we know than the angel we don't"? Although many voters have a throw the bums out mentality, putting Republicans out of favor for the moment, in times of crises perhaps people are rethinking whether they would not prefer the familiar to the enchanting.

This seems to be the election of the enchanted so far. Barack Obama and John McCain were underdogs at the beginning of the presidential primaries but have withstood their critics harshest blows and came out on top.

This post is part of our Battle of the Brands feature. Let us know which brand you prefer, and check out other Battle of the Brands posts.

Oh, how the sugary have fallen. Ten years ago, even five, you and I both know how this would have come out. In the standoff between longtime national fried-dough pusher Dunkin' Donuts and upstart sweet freak Krispy Kreme Doughnuts (NYSE: KKD), Krispy reigned supreme. The chain was rolling out new franchises as fast as dough circles could parade around its restaurants on shiny metal racks, and each time it did local police stations did overtime directing traffic.

Somehow, the mighty fell after the considerable sugar high, largely connected to poorly-managed finances, badly-handled expansion, and a sudden national fear of carbohydrates. All the while, Dunkin' Donut managers everywhere continued to plod along, making the doughnuts, and quietly stirring a blue-collar breakfast revolution. One day America woke up and realized, hey, Dunkin' Donuts' coffee is good! Someone named it "Better than Starbucks" and it soon became clear that the product guys had realized something: we make a lotta money off of coffee. Actually, more than half of the company's revenue.

Say what you want about the tasty warmth of its fresh-from-the-fryers glazed confections, Krispy Kreme Doughnuts (NYSE: KKD) hasn't been leading the sweet life of late. Beleaguered and beaten down in the midst of what CNN Money calls a "sputtering turnaround effort," the company remains challenged with an anemic share price, struggling sales, and folding franchise locations.

Today, Chief Executive Daryl Brewster, who took the reins in March 2006, announced plans to retire for personal reasons. Brewster will leave his post at the end of this month. The board quickly named James Morgan, board member since 2000 and chairman of the board since 2005, to take the vacated seat.

In other news, Krispy Kreme has followed the lead of many fast-food concerns to announce that all products sold in the U.S. are now free of trans fats. KKD officials said it has been introducing zero-grams trans fat products across the country during the past several months.

Investors are cheering this combination of news, as the stock has spiked 9.5% in today's trading. Of course, given the stock's current price (around the $3 level), this represents an absolute increase of 27 cents per share.

Beth Gaston Moon is an analyst at Schaeffer's Investment Research.

Shares of doughnut chain Krispy Kreme (NYSE: KKD) are surging today as the company reported its loss had narrowed to $798,000, or 1 cent a share, in the third quarter ended October 28, from $7.2 million, or 12 cents a share, a year earlier. For the last four years the Krispy Kreme stock has been as tasty for investors as a week-old doughnut lying around uncovered. After trading in the upper $40s a few years ago, the stock has been hit by healthier eating trends, mismanagement, and even bankruptcy by some of its franchisees.

For full disclosure, I try my best to help the stock, as I buy the doughnuts whenever possible, as I think they are awesome. For me, nothing's like a glazed Krispy Kreme.

Notwithstanding today's surge in the stock, the outlook for the company is murky at best. It said that there will be more store closures which will impact revenues. Its balance sheet is nothing to write home about either. As of October 28, the company had about $23 million in cash on its balance sheet, and $88 million in debt. It had about $11 million in additional debt capacity available under its credit facilities.

While I probably wouldn't get near the stock until we see continued evidence of a turnaround in their financials, I would jump at the chance of getting another dozen to eat while I write my next few posts! What's your favorite flavor?

Aaron Katsman is the lead Portfolio Manager and Managing Director of America Israel Investment Associates, LLC. and Senior Editor of IsraelNewsletter.com. Disclosure: Writer has no position in any stock mentioned as of 12/6/07.

I came in late on the Battle of the Brands and missed a chance to join in the fun, but I have been keeping my own list, for what it's worth:

Borders Group Inc. (NYSE: BGP) vs. Barnes & Noble, Inc. (NYSE: BKS) -- Borders. Better coffee, magazine selection, and easy chairs. If only they didn't waste so much store space on those bound-paper things; there are shelves and shelves of them getting in the way of the gift cards, games, and Will Ferrell DVDs.

Krispy Kreme Doughnuts (NYSE: KKD) vs. Dunkin' Donuts -- Krispy Kreme. Their trademark glazed ring is only 200 calories, while Dunkin' Donut's standard cake donut runs to 300. Stated in standard American consumption units, that would be 2,400 calories/dozen vs. 3,600.

Home Depot, Inc. (NYSE: HD) vs. Lowe's Companies, Inc. (NYSE: LOW) -- I choose Home Depot, for their attire. Every time I'm in a Lowe's, I find myself wondering why they can't wash their vests. Perhaps they should acquire Aramark.

Time Warner Inc.'s (NYSE: TWX) Time magazine vs. Washington Post Co.'s (NYSE: WPO) Newsweek -- Time. I found a couple of pages in the last issue of Newsweek where I actually had to read text. What's up with that?

Charmin, a product of Procter & Gamble (NYSE: PG), vs. Northern, a product of Koch Industries -- Charmin wipes out the competition. To paraphrase a CEO of BFI, their bottom line is my bottom line.

Jockeys vs. Boxers -- jockeys. They're holding a high pair.

Left turns vs. right -- Right. It's hard to hold the cell phone without spilling my coffee when turning left.

Babies vs. kittens -- They both start off cute, but evolve into creatures that lie around the house expecting to be pampered without bothering to show gratitude. A cat, however, won't expect you to send it to Yale, then blow off senior finals to go to the Burning Man Festival.

Baseball vs. waiting for a Twinkie to show signs of decay -- Baseball. They bring beer to you.

The Gateway Grizzlies are a Frontier League team that just-so happens to play about 12 miles from my home. Last month, Tom Barlow mentioned how one of the ballpark's unique concoctions is a hamburger that swaps out the traditional boring bun with a Krispy Kreme (NYSE: KKD) doughnut. I must say, I'm equal parts tantalized and repulsed, and have informed my husband and friends that we WILL be attending a Grizzlies game this summer, if only to try the delicacy (and, of course, to support the fledgling team).

While KKD has been on my mind of late as I dream of the perverse amalgam of ground beef and fried dough, it is also under the microscope this week as it prepares to release its fourth-quarter 2007 earnings after the close on Thursday. Analysts are currently expecting the firm to bank anywhere between five and eight cents per share (according to Zacks.com).

The technical picture is currently improving on the shares; just this week, KKD managed to hurdle above resistance at its 80-day moving average for the first time since February 23. For the time being, the stock has also regained control of its 10-week and 20-week moving averages.

Poor Krispy Kreme Doughnuts (NYSE:KKD), battered by stock analysts for its poor performance, by the health community for nutrition, and by Atkins devotees for its carboliciousness.

The company has begun to respond, though. In the past month, it has announced plans to remove trans-fat from the cooking process. (Will January of 2007 forever be remembered as the month trans-fat died?) Now it is about to unveil a whole wheat doughnut.

While a regular Krispy Kreme ring has about 200 calories, the whole wheat version will trim this to 180. By my calculations, this means that I can now eat 11 and still consume fewer calories than my normal breakfast of 10.

Looking at the aging U.S. population, I wonder if KK might not drive even more sales to the health conscious by adding Metamucil or Ducolax for some needed fiber?

KK is also pushing a Valentine's Day program for schools that still haven't noticed their students don't fit in their desks any more. Share the Love with Krispy Kreme will offer Valentine's Day cards good for a free ringer with the purchase of a dozen. Better yet, locations will be frying up special heart-shaped doughnuts, iced and sprinkle coated, that KK suggests would be perfect for your kid to take to school for the VD party!

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This post is written as part of AOL Money & Finance's Best & Worst 2006. If you're a doughnut lover rooting for Krispy Kreme's comeback, cast your vote for it.

Poor Krispy Kreme. People once stood in line for store openings to get their free doughnuts, and the company and brand were the darling of markets and growing well. Who doesn't love a doughnut?

But Krispy Kreme (NYSE:KKD) has fallen from its perch and been dunked in the hot oil of reality: over the past few years the growth of the low-carb awareness -- in the form of Atkins, South Beach, Sugar Busters, and other diets that caused people to cut simple carbohydrates down or out of their diets -- was widespread. Even bread companies complained about the dip in sales.

Then the doughnut company got hit by a second health punch in the form of health awareness about trans fatty acids.

You want to tell customers that they should have realized well before all this that doughnuts obviously aren't good for you? Did anyone seriously think eating doughnuts was somehow not going be a dietary no-no? Were doughnut-eating customers so naive that when they were told these things were unhealthy they suddenly gave them up? If so, it might be a victory for public health awareness, but you have to wonder what kind of a rock Krispy Kreme's previous customers were under.

You want to root for Krispy Kreme to make a comeback, because really, we all like doughnuts. Sure they're not good for us, but neither is anything else that's truly fun in the world. Many of us secret doughnut lovers will be happy to put in some extra treadmill time if Krispy Kreme can come to grips with its deserters and continue to give us a standard glazed doughnut. Hang in there guys!

Today on MAD MONEY: sweet nothings. Jim Cramer said on this evening's show that, while there are some analysts whose recommendations he wouldn't touch with a 10-foot pole, Prudential's Howard Penney isn't one of them. When Prudential initiated Krispy Kreme Doughnuts (NYSE:KKD) with a 'buy' recommendation last week, Cramer agreed. [But disagreeing with the general consensus among BloggingStocks writers, it should be pointed out.]

Although Cramer admitted he has made a joke of KKD for five years, but he says now it is worthy of a "Buy." Prudential's analyst report converted him thanks to his "honest y" and previous good calls, such as OSI Restaurant Partners, Inc. (NYSE:OSI).

Cramer explained that Prudential has no conflicts because the company does no investment banking. There is risk here, but if you look rationally at the stock the call makes sense. The company's doughnuts are good and, as Prudential points out, international prospects can outweigh the historically dismal financial performance.

Cramer said that anyone who owns the stock now has already weathered a storm and isn't going to panic. They are all strong holders and the shorts are out in force on the name still.

Jon Ogg is a partner in 247 Wall Street and he does not own securities in the companies he covers.

When I went to college, I ventured far from my safe liberal hippie Portland, Ore. home -- all the way to a little town in Virginia. Robert E. Lee's horse was buried a few feet from my freshman dorm room, if that's any description. And that's when I was introduced to Krispy Kreme.

My immediate reaction? Eww! "Krispy Kreme" sounded like something that had been left in the hall's refrigerator since the early 80s. I didn't even try the doughnuts until five years later, and swayed by a friend who loved them and the convenient location in New York's Penn Station, I grew to hunger for their swift sugary rush. When I moved back to Portland at about the same time embarked on its wild expansion across the U.S., I jumped on the bandwagon and bought a little stock.

A year later everything in my portfolio was doing brilliantly with the marked exception of Krispy Kreme, which had lost roughly two-thirds of its value, closed 100 of its 400 stores, and initiated a program of franchise buybacks that is now being "informally inquired" about by the SEC. I let it sit there, soaking up the juice thrown off by winners like eBay, Inc. (NASDAQ:EBAY) and J.C. Penney Company, Inc. (NYSE:JCP) with its nutritionally empty sweetness. It's still there, and let me tell you, I'm not planning on utilizing those 12 shares as a down payment on my retirement vacation home.

That's why when I saw Prudential had initiated with a 'Buy' and a $15 price target. My reaction was one of gaping, open mouth.