Krispy Kreme(US:DNUT) The Motley Foolยท2025-07-29 00:16Core Viewpoint - Krispy Kreme's stock experienced a significant decline as the momentum from meme-stock trading faded, with a drop of approximately 7% in a single trading session [1][2][4]. Group 1: Stock Performance - The stock closed down roughly 7% and had previously been down as much as 9.5% during the trading day [1]. - Despite the pullback, Krispy Kreme's stock is still up about 26% over the last week [2]. - The recent surge in meme-stock trading contributed to substantial valuation gains for Krispy Kreme, although these gains are disconnected from the company's fundamental performance [5]. Group 2: Market Context - The stock market has reached new all-time highs, and there is speculation about a potential significant interest rate cut by the Federal Reserve [4]. - Investors are optimistic about a rate cut, but it remains uncertain [4]. Group 3: Company Outlook - Krispy Kreme's valuation had previously pulled back earlier in the year due to the conclusion of its partnership with McDonald's [5]. - The company is implementing cost-cutting initiatives to support margins amid a weaker sales outlook [5]. - A potential interest rate cut from the Federal Reserve is deemed essential to sustain the stock's meme-driven gains [5].