Starbucks Sinks

Krispy Kreme declines; Gilead Sciences rises; plus more of today's stocks in the news

Coffee chain Starbucks (SBUX ) posted 8% higher August same-store sales and 25% higher consolidated net revenues. WR Hambrecht says the results are lower than the Street's expectations, but it sees the weakness as a great buy opportunity and reiterates the buy rating.

Krispy Kreme (KKD ) posted 9 cents, vs. 21 cents second-quarter earnings per share as higher expenses and charge, costs offset flat same-store systemwide sales and an 11% total revenue rise. The doughnut chain sees 15% fiscal 2005 systemwide same-store sales growth. S&P reiterates the hold ranking.

Gilead Sciences (GILD ) says preliminary data from an ongoing study comparing a regimen of Viread and Emtriva, efavirenz to Combivir, and efavirenz in treatment-naive patients with HIV showed a statistically significant difference favoring Viread and Emtriva. First Albany keeps the buy rating, and Legg Mason says hold the share. S&P keeps the accumulate ranking.

Toronto-Dominion Bank (TD ) confirmed it would pay $3.8 billion for a controlling stake in Banknorth Group (BNK ). Terms: $12.24 cash and 0.2351 TD Bank common share, and 0.49 share of new Banknorth stock for each Banknorth share.

Banc of America downgraded Advanced Micro Devices (AMD ) to neutral from buy, and cut its target prices across its semiconductor universe.

Dollar General (DG ) posted 22 cents, vs. 18 cents second-quarter earnings per share on a 3.2% same-store sales rise and an 11% total sales rise.

The Financial Times reported that the U.S. Justice Dept. has launched a grand jury investigation into Career Education (CECO ) to determine if fraud allegations are true. Piper Jaffray reportedly downgraded to market perform from outperform.

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