The shares of Krispy Kreme Doughnuts Inc. (NYSE/KKD) are up 86% from its 52-week low and on March 7 surged 14% on news that it had hired Daryl G. Brewster as the company's new president and CEO. Brewster has excellent credentials, having served as the president of the North American snacks and cereals business of Kraft Inc. (NYSE/KFT). While positive, I hardly believe Brewster will be able to turn around this sinking ship. Nothing against him, but he faces many hurdles and a trend of declining demand for calorie rich doughnuts.

 Prior to his arrival, Krispy Kreme had in place a major restructuring plan to rid or sell off underperforming outlets by turnaround specialist and ex-acting CEO Stephen F. Cooper. But, will this save Krispy Kreme?

 It may, and Brewster will help, but the reality is the doughnut business is not a growth area. It is facing declining sales and a market shift towards healthier diets. So adding a 400-plus calorie glazed Krispy Kreme doughnut to someone's diet just does not make any sense.

 Why investors would want to buy Krispy Kreme Doughnuts is beyond me. And to make it more unbelievable, the company has not filed financial statements in over a year! You heard it right. No financial statements and investors are still piling into this 'dog' of a stock. Krispy Kreme now has until April 30 to file its financial statements.

 I may be wrong but I think there are much better areas to lose your money. How about Vegas? Or better yet, betting on the Atlanta Hawks of the NBA to get into the play-offs and win the championship. I believe you know where I'm coming from.

 There are much better risk-to-reward investments out there. In humble estimation, Krispy Kreme combines significant risk and a business model that is broken and will be difficult to fix.