Why Krispy Kreme Was Such a Tasty Stock in June

Inclusion in several new stock indexes was the key reason why, while a set of smooth C-suite transitions put some glaze on its donut

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Although landing on an index confers prestige to a stock, such a move rarely has an impact on a company's operations and fundamentals

Still, as a component of a certain index, a stock's ity will rise simply due to the liferation of index funds

These instruments are limited to the stocks on a particular index, so naturally, those titles get selected for the related fund or funds

But once it becomes known that a stock is graduating to an index, this dynamic is usually priced in

C-suite shifts Later in the week, Krispy Kreme announced a set of executive transitions

Effective July 11, it will have a new CFO -- Raphael Duvivier, its current president of international and a long-serving company executive

He replaces Jeremiah Ashukian, who is departing for a position at an unnamed private company

Another company veteran, Alison Holder, has been moted from her current position of chief duct officer to chief brand and duct officer

Previously in her 25-year career with Krispy Kreme, she filled numerous managerial roles, including senior director of consumer insights

To me, neither development is sufficient to tip Krispy Kreme into buy territory

Revenue has been flat to stagnant lately, and it's posted more quarterly net losses than fits

I don't see many growth paths for the, especially in a world that is becoming increasingly health-conscious

Eric Volkman has no position in any of the stocks mentioned

The Motley Fool has no position in any of the stocks mentioned

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