Krispy Kreme test offering at McDonald’s going ‘very well,’ says CL King

CL King made no change to the firm’s Buy rating or $16 price target on shares of Krispy Kreme (DNUT) following the expansion of the test offering to 164 McDonald’s (MCD) locations in the Louisville and Lexington markets. The firm believes the test went very well, including includes strong results with respect to key operational metrics, including drive-through speed, employee touch points and ease of use, and thinks sales results were strong, the analyst tells investors in a research note. If Krispy Kreme were to end up expanding at McDonald’s, current capacity would allow for 2,000-2,500 McDonald’s restaurants, the firm says.