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This is what's creaming Krispy Kreme's stock right now

Everybody lovesdoughnuts, but when it comes to one doughnut-maker's stock, well, that may be a different story.

Shares in Krispy Kreme fell 10 percent during after-hours trading on Monday after the company lowered its current year's earnings outlook. That didn't surprise one analyst who covers the name.

Nick Setyan, vice president of equity research at Wedbush Securities focuses on the restaurant sector. Just before the company announced its first-quarter earnings results, Setyan said he was "very cautious" about the company's impending results.

(Read: Krispy Kreme cuts full-year adjusted earnings outlook)

"The numbers are too high right now, especially for the year," said Setyan of the market's outlook on Krispy Kreme. "I think we've kind of set up for a risky quarter as well…. Numbers may need to come down for the year."

Indeed, the company subsequently lowered its earnings outlook for the year down to $0.69 to $0.74 per share, from a range of $0.73 to $0.79.

Meanwhile, JC O'Hara, chief market technician at FBN Securities, was also cautious based on Krispy Kreme's charts.

(Read: After-hours buzz: Quiksilver, Krispy Kreme, International Paper & more)

"It's very difficult to derive a directional conviction here," said O'Hara. "Year-to-date, this stock is essentially flat. It's traded within its $4 range, $20.50 on the upside [and]] $16.50 on the downside."

O'Hara recommends investors waiting to see how the market reacts and correctly predicted a 10 percent move in the stock upon the earnings release.

"This is one of those instances where I don't want to front-run the numbers," O'Hara said. "I want to sit back, see what happens, and I will react accordingly."

To see the full discussion on Krispy Kreme, with Setyan on the fundamentals and O'Hara on the technicals, watch the above video.

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