According to data compiled by S&P Global Market Intelligence, Krispy Kreme (DNUT -3. 63%) stock rose a sweet 25% across the trading week shortened by the July Fourth holiday.
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.
Newly indexed Krispy Kreme's stock, which has been a component of the influential Russell 2000 stock index, was tapped for several other equity trackers within the same family.
It's now included on the Russell 2000 Value index (not to be confused with the Russell 2000), the Russell 2500 Value index, the Russell Small Cap Comp Value index, and the Russell 3000E Value index.
Image source: Getty Images. 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. The Motley Fool has a disclosure policy.