Krispy Kreme

Struggling doughnut shop chain Krispy Kreme Doughnuts (KKD) on Monday reported an unexpected quarterly loss, hurt by store closing costs and sluggish sales, and its stock fell 15.5%. The company, which is facing a Securities and Exchange Commission investigation into how it accounts for repurchased franchises, also withdrew its forecast calling for systemwide sales to rise 15 percent for its fiscal year, which ends in January. The quarterly loss is the latest in a string of troubles for Krispy Kreme that began in May, when it posted its first quarterly loss since going public and cut the number of planned new stores, blaming the low-carb diet craze for curbing appetite for doughnuts. Some investors have also suggested the company expanded too quickly and the one-time darling of Wall-Street has lost 80% of its market value since its peak in August 2003. [Source: FoxNews]



Here's my question: Who are the idiots on Wall Street who valued Krispy Kreme at $2.577 billion?