A private equity group unfamiliar to the stock market world claims to have made a bid to acquire struggling donut maker Krispy Kreme (NYSE:KKD). According to The Winston-Salem Journal, MGL Asset Management Group has offered $7.25 a share for the company, a premium of almost $2 a share over its closing price Monday.

The mystery surrounding MGL, its assets, ownership and ambitions have caused some to meet the proposal with skepticism. The company provides almost no information on its web site, and its spokesperson told the Journal that the bid was legit, but declined to elaborate.

The skepticism about this offer seems to stem from the wisdom and timing of such an acquisition. Although KKD just reported its first profitable quarter in over three years, overall, since selling in the $50 range before the carb craze, it has waffled ever since below the $10 mark, bottoming out at $2.50 a share just last November.

At a shareholder meeting recently, the CEO of Krispy Kreme reiterated the company's plans to build international business and increase the range of snack foods sold in convenience stores. Neither option, in my opinion, is likely to have a strong impact on the company's bottom line in the near future, if at all. One profitable quarter after three and a half years of losses in a company with a tired brand doesn't whet my appetite.

I wonder what drives MGL's interest? Perhaps they're looking at the hole picture, with a glazed look in their eyes.

Here are some highlights from this past week's earnings coverage from BloggingStocks:

• ADC Telecommunications Inc. (NASDAQ: ADCT) beat Q2 estimates and raised its full-year guidance.
• Alcoa Inc. (NYSE: AA) near-term earnings prospects led to an analyst downgrade.
• Banco de Chile (NYSE: BCH) earnings prospects after an acquisition led to an analyst's upgrade.
• Benihana Inc. (NASDAQ: BNHN) posted lower Q4 profits but still beat earnings estimates.
• Bob Evans Farms Inc. (NASDAQ: BOBE) reported solid Q4 results due in part to cost management.
• Brown-Forman Corp. (NYSE: BF.B) easily beat Q4 estimates and offered full-year guidance.
• CMGI Inc. (NASDAQ: CMGI) lowered its guidance, sending shares tumbling 25%.
• Coca Cola Hellenic Bottling Co. (NYSE: CCH) warned of weaker earnings due to economic conditions.
• Conn's Inc. (NASDAQ: CONN) reported solid Q1 results and issued in-line guidance for the year.
• Dick's Sporting Goods Inc. (NYSE: DKS) earnings prospects impress analysts despite recent guidance.
• Guess? Inc. (NYSE: GES) topped Q1 expectations due to strong international expansion.
• Krispy Kreme Doughnuts Inc. (NYSE: KKD) swung to a Q1 profit despite falling revenues.
• Lehman Brothers Holdings Inc. (NYSE: LEH) posted a bigger-than-expected loss on further write-downs.

Krispy Kreme Doughnuts Inc. (NYSE: KKD) which has struggled recently with allegations of mismanagement, healthier eating trends, bankruptcy filings by franchisees, and increased competition, said on Monday that it swung to a profit in the first quarter. Also on Monday, Pall Corp. (NYSE: PLL), which makes filters and purifiers, said fiscal third-quarter profit rose, boosted by favorable foreign currency translation and increased sales.

For the quarter that ended May 4, Krispy Kreme reported a profit of $4 million, or 6 cents per share, compared with a loss of $7.4 million, or 12 cents per share in the prior year quarter, when results were cut into by refinancing and litigation charges.

However, revenue fell 7% to $103.6 million from a year ago. The Winston-Salem-based doughnut retailer said same-store sales fell 3.9% overall, but rose 1.2% at company-owned stores.

Krispy Kreme shares rose 48 cents on Monday, or 14%, to $3.90, but slipped in after-hours trading. Shares have risen 23.4% year to date, but are still well off their 52-week high of $9.50.

Here are some highlights from this past week's earnings coverage from BloggingStocks:

• Big Lots Inc. (NYSE: BIG) beat Q1 expectations and offered Q2 and full-year earnings guidance.
• Brown-Forman Corp. (NYSE: BF.B) beat Q4 estimates on demand for Jack Daniels and Finlandia vodka.
• Collective Brands Inc. (NYSE: PSS) reported strong Q1 results despite a litigation charge.
• Del Monte Foods Co. (NYSE: DLM) Q4 earnings surged 37% but fell short of analysts' estimates.
• Dollar Tree Inc. (NASDAQ: DLTR) beat Q1 earnings expectations and offered Q2 and full-year guidance.
• Dr Pepper Snapple Group Inc. (NYSE: DPS) Q1 earnings surged 38% but fell short of expectations.
• Guess Inc. (NYSE: GES) reported strong Q1 results on strength in Europe and Asia.
• National Semiconductor Corp. (NASDAQ: NSM) posted better-than-expected Q4 results.
• Nucor Corp. (NYSE: NUE) raised its earnings outlook for the coming Q2 report, sending shares higher.
• SeaChange International Inc. (NASDAQ: SEAC) reported better-than-expected Q1 results.
• Smithfield Foods Corp. (NYSE: SFD) Q1 profits fell 94% on rising grain costs and falling hog prices.
• Toll Brothers Inc. (NYSE: TOL) reported a smaller-than-expected Q2 loss, lifting shares.
• Wimm-Bill-Dann Foods (NYSE: WBD) reported strong Q1 results that beat Wall Street expectations.

See also: Earnings highlights: Wal-Mart, Lehman Bros., Take-Two, Ciena, Trina Solar and others

Also, continued real estate losses are expected to hurt the quarterly reports of banks such as like Wachovia (NYSE: WB), Wells Fargo (NYSE: WFC), and National City (NYSE: NCC). And Steven Mallas wonders why Playboy (NYSE: PLA) shares have tanked since its last earnings report.

Upcoming results to watch for include Krispy Kreme (NYSE: KKD), Pall Corp. (NYSE: PLL), Pep Boys (NYSE: PBY), Korn Ferry (NYSE: KFY), and Casey's General Stores (NASDAQ: CASY).

Visit AOL Money & Finance for more earnings coverage.

Here are some highlights from this past week's earnings coverage from BloggingStocks:

• Bob Evans Farms Inc. (NASDAQ: BOBE) posted stronger-than-expected Q4 earnings.
• Ciena Corp. (NASDAQ: CIEN) beat earnings expectations, but share prices slipped anyway.
• Daktronics Inc. (NASDAQ: DAKT) Q4 results beat expectations and it raised its revenue outlook.
• Diageo (NYSE: DEO) is recession-proof and should deliver solid results, predicts one adviser.
• Donaldson Company Inc. (NYSE: DCI) beat Q3 expectations and raised its full-year guidance.
• Ensco International Inc. (NYSE: ESV) was upgraded because of its earnings growth potential.
• Lehman Brothers Holdings Inc. (NYSE: LEH) earnings prospects don't impress Jim Cramer.
• Netezza Corp. (NYSE: NZ) beat Q1 expectations and offered full-year revenue guidance.
• Potash Corp. (NYSE: POT) earnings are "set to soar" says one analyst, due to rising demand and prices.
• Sherwin-Williams Co. (NYSE: SHW) lowered its Q2 and full-year forecasts, sending shares down.
• Take-Two Interactive Software Inc. (NASDAQ: TTWO) beat Q2 estimates on Grand Theft Auto IV demand.
• Trina Solar Ltd. (NYSE: TSL) beat Q1 estimates but shares fell on the disappointing Q2 outlook.
• Wal-Mart Stores Inc. (NYSE: WMT) was upgraded due to its earnings outlook and increased productivity.

See also: Earnings highlights: Toll Bros., National Semiconductor, Dr Pepper, Guess and others

Also, continued real estate losses are expected to hurt the quarterly reports of banks such as like Wachovia (NYSE: WB), Wells Fargo (NYSE: WFC), and National City (NYSE: NCC). And Steven Mallas wonders why Playboy (NYSE: PLA) shares have tanked since its last earnings report.

Upcoming results to watch for include Krispy Kreme (NYSE: KKD), Pall Corp. (NYSE: PLL), Pep Boys (NYSE: PBY), Korn Ferry (NYSE: KFY), and Casey's General Stores (NASDAQ: CASY).

Visit AOL Money & Finance for more earnings coverage.

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.

Here are a few highlights of this past week's earnings coverage from BloggingStocks:

• Big Lots Inc. (NYSE: BIG) reported a record quarter due in part to improved distribution.
• Blyth Inc. (NYSE: BTH) trounced EPS estimates and raised its guidance.
• ConAgra Foods Inc. (NYSE: CAG) raised its earnings forecast for Q2 on strength in merchandising.
• Donaldson Co. (NYSE: DCI) beat estimates due to strength in international markets.
• J. Crew Group (NYSE: JCG) posted a solid quarter due to strength in both store and direct sales.
• Krispy Kreme Doughnuts Inc. (NYSE: KKD) narrowed its loss, but foresees further store closures.
• Liquidity Services Inc. (NASDAQ: LQDT) posted a strong quarter, benefiting from the sluggish economy.
• Merck & Co. Inc.'s (NYSE: MRK) earnings forecasts for 2007 and 2008 fall short of expectations.
• Netezza Corp. (NYSE: NZ) beat expectations of both earnings and revenue.
• Palm Inc. (NASDAQ: PALM) forecast a loss for the current quarter due to product delays.
• Royal Bank of Scotland's (NYSE: RBS) better-than-expected forecast buoyed European banks.
• SeaChange International (NASDAQ: SEAC) reported a profit when analysts expected a loss.
• Sigma Designs (NASDAQ: SIGM) had a "blowout" quarter, beating even the most optimistic analyst.
• SkillSoft (NASDAQ: SKIL) beat expectations of both earnings and revenue.
• Toll Brothers Inc. (NYSE: TOL) posted a lower-than-expected loss, its first quarterly loss in 21 years.

Also, Brian White looks at how loss of market share contributed to Dell Inc.'s (NASDAQ: DELL) recent results. Both Douglas McIntyre and Jim Cramer mull the effect on the cable industries of Comcast Corp.'s (NASDAQ: CMCSA) lowered guidance. And Target Corp. (NYSE: TGT) is among retailers warning about earnings in the current quarter.

Upcoming results to watch for include: H&R Block (NYSE: HRB), Kroger Co. (NYSE: KR), Costco (NASDAQ: COST), and Lehman Bros. (NYSE: LEH).

Visit AOL Money & Finance for more earnings coverage.

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.

Just when I thought flying couldn't become more unpleasant comes word that US Airways (NYSE:LCC) passengers will have to fly over New Mexico dry. Apparently, the airline is in a tiff with the state's alcohol regulators, who have refused to give them a permit to serve booze while in or over the state. Apparently, the state extends into orbit.

Stuck for what to bring to that Thanksgiving potluck? I'm thinking a cheesecake would be nice, but...I wish there was a way to make it a little more fattening. Thankfully, Lisa Robertson of North Carolina showed me the way with her award-winning Krispy Kremey White-Chocolate Raspberry-Filled Cheesecake, which uses Krispy Kreme (NYSE:KKD) donuts for its crust.

The Boston Globe reports that "For more than four years, a small team huddled in the Dunkin' Donuts research lab trying to crack the code for a doughnut without trans fats that tasted just like those on which the chain had built its reputation over the last half century."

And now, at last, they have done it. In a few weeks, Dunkin's 5,300 stores will introduce trans-fat free donuts. While they can hardly be considered a health food -- they still contain the same amount of total fat -- this has to be considered a major accomplishment. Just a few years ago, there was doubt about whether such a feat could be accomplished. Competitor (sort of like saying the Tampa Bay Devil Rays compete with the Yankees ...) Krispy Kreme Doughnuts (NYSE: KKD) is still working on a trans-fat free donut, and doesn't yet have anything ready to market.

What's next for these doughnut-engineers? How many years are we away from a truly healthy donut? Will fat-free, sugar-free ice cream ever taste like something other than opening the freezer and sticking your head in? All of this talk about healthy junk food reminds me a bit of alchemy, but researchers seem to be making progress.

But would a healthy donut even be fun? Or would it become to common-place to count as a treat, and lose its allure?

If you had a target of $11 on Krispy Kreme (NASDAQ: KKD) when the stock was at $6.33 and then the company reported a horrible quarter and the stock tanked more than 38%, what would you?

If you're CIBC, you would issue an "oops", but still manage to maintain an authoritative tone. CIBC "removed" their price target of $11. Not lowered, just removed. Poof. Gone!

The analyst pointed out, quite correctly, that many of the cures management talked about in the earnings release and on the conference call have already been tried or are currently in place. The company is also facing a liquidity crunch, and declining revenues are doing little to help that.

Shares of Krispy Kreme (NASDAQ: KKD) tanked more than 38% today after the beleaguered donut chain reported a terrible quarter.

Revenue fell 7.5%, and the company lost $27 million, compared with $4.6 million in the same quarter of last year. Results were hurt by impairment charges and lease termination costs as the company closes underperforming locations. The shares closed at their low for the day, $3.91, which is roughly the lowest the shares have traded in the company' history. The stock had traded at over $12 as recently as January.

Analysts quoted in the latest AP coverage of this mess have a hard time being optimistic. As BB&T Capital Markets analyst Andrew P. Wolf said, "the nascent turnaround at the company has (at best) stalled."

Hmm. Krispy Kreme's CEO Daryl Brewster talked about the company's turnaround plans, and added that "The only things nonnegotiable are our consumers, our brand and our quality."

But the company's overly-aggressive expansion may have hurt its brand and quality: Are donuts available at grocery stores and kiosks really something you associate with a premium brand?

It's great that the current management is focused on the brand, but overexpansion may hurt that image beyond repair. And although takeover rumors have surrounded the company since its decline began, it really doesn't look all that cheap, even after the decline.

In a blog post today, MarketWatch's Herb Greenberg wonders about the company's solvency: "Especially troubling is the company's concession that for the six months it's not in compliance with EBITDA covenants with its lenders -- not good when cash and cash flow are going down, as is the case at Krispy Kreme."

Restructuring would appear to be a real possibility at some point, and dieters as well as investors would do probably do well to avoid Krispy Kreme for now.

Americans are having a love affair with anything that contains even a hint of fruit. Consumer demand is so high, the U.S. is on a pace to roll out a record number of products that claim to have fruit content, according to Datamonitor. There have been over 240 fruit-related products launched in the past six months alone, compared to 124 in all of 2000.

Marketers have taken the fruit craze so seriously that Kraft Foods Inc. (NYSE: KFT) will launch nine products in 27 fruity varieties this year. Other products include PepsiCo Inc.'s (NYSE: PEP) Frito-Lay brand Flat Earth Baked Fruit Crisps, with half a serving of fruit per ounce. Kraft's Jell-O is launching its first ready-to-eat Jell-O cut with fruit pieces, aptly named Fruit Passions. Baskin-Robins' has come out with a kid-friendly mixed berry blend called Penguin Swirl that turns your tongue black.

The fruit craze comes two years after the government changed the Food Pyramid's recommended level of fruit and vegetable consumption, which created greater demand. Tom Vierhile, director of Datamonitor's Productscan Online, told USA Today that some marketers may also be looking for ways to get their banned products back in schools. "Fruit gives a positive that marketers can talk up."

But schools, as well as the general public, need to be savvy label readers. While some new products might be"fruit-infused," they're not always healthy. Krispy Kreme's (NYSE: KKD) jelly-filled donuts could never be seen as a "healthier alternative" to those delicious creme-filled donuts. What ever happened to a good ol' piece of fruit? Caveat cenator.

Krispy Kreme Doughnuts (NYSE: KKD) announced today that it will be launching a new "Multigrain cake doughnut made with seven grains and topped with an oatmeal crisp crunch. For a limited time, customers can enjoy this delicious treat made with molasses, brown sugar and pecan flavors."

The doughnut will debut on July 9, but the announcement doesn't appear to have budged Krispy Kreme's shares, a fact lamented by MarketWatch this morning: "Once upon a time, Krispy Kreme could generate levels of media hype close to those that Apple manages for every gizmo launch. Sadly for the doughnut maker's shareholders, however, those days are long gone."

So too is most of Krispy Kreme's shareholder value since it soared into the $40's a few years ago. Accounting and management scandals along with overly-aggressive expansion have let most out of the air out of this once-hot growth darling. But there may be a reason for optimism.

The company's largest shareholder, Mohamed Abdulmohsin Al Kharafi & Sons WLL, a Kuwaiti-based firm led by the Al Kharafi family, has increased its stake 20% recently, and now controls 11.4% of the company. The confidence of a large shareholder (which also agreed to a deal to develop franchises in the Middle East) might be a reason to at least give Krispy Kreme a look.

But as far as the shares have fallen since their heyday, they still don't look that cheap at 1.28 times sale for a company that isn't profitable.