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Down More Than 70% From Its High, Is Krispy Kreme Stock a Bargain Buy?
Yahoo Finance· 2025-10-09 13:53
Key Points Krispy Kreme's sales have been declining in recent quarters. Questions linger about its future growth prospects. Management has unveiled a plan to return to profitability. 10 stocks we like better than Krispy Kreme › Krispy Kreme (NASDAQ: DNUT) hasn't been a great stock to own this year. It's down more than 70% from its 52-week high of $12.68, which it reached last November. Since then, it's been in a persistent downward spiral as its lackluster results haven't given investors much of a ...
Why Is Wall Street So Bearish on Krispy Kreme? There's 1 Key Reason.
The Motley Fool· 2025-08-22 12:11
Group 1 - Krispy Kreme's stock has dropped 73% from its yearly peak, trading at 0.4 times trailing sales and 0.9 times book value, indicating severe financial distress [1] - The partnership with McDonald's, initiated in October 2022, was initially promising but ultimately led to significant financial burdens for Krispy Kreme [2][3] - The nationwide rollout of the McDonald's deal was halted in Q2 2025 due to high costs associated with the delivery program, which proved unsustainable on a larger scale [3] Group 2 - Krispy Kreme is currently reviewing its logistics setup to find more cost-effective solutions and is terminating hundreds of underperforming delivery contracts [5] - The company plans to replace more than half of the shuttered deals with higher-volume routes by the end of 2025, partnering with major retailers like Walmart, Costco, and Kroger [5][6] - While there is potential for a long-term turnaround if operations focus on profitable routes, the current sentiment among investors is disappointment due to the failed McDonald's experiment [6]
Unlocking Krispy Kreme (DNUT) International Revenues: Trends, Surprises, and Prospects
ZACKS· 2025-08-11 14:21
Core Insights - Krispy Kreme's total revenue for the quarter ending June 2025 was $379.77 million, reflecting a year-over-year decline of 13.5% [4] - The company's international revenue accounted for 35% of total revenue, amounting to $132.76 million, which was an 11.48% surprise compared to analyst expectations [6] International Revenue Breakdown - Market Development generated $16.91 million, constituting 4.5% of total revenue, which was a decline of 27.17% from the projected $23.22 million [5] - International revenue showed a positive trend, increasing from $119.64 million (31.9%) in the previous quarter and $125.27 million (28.6%) in the same quarter last year [6] Future Projections - Analysts project total revenues of $381.23 million for the ongoing fiscal quarter, a slight increase of 0.4% from the previous year, with Market Development and International expected to contribute $20.7 million (5.4%) and $126.78 million (33.3%) respectively [7] - For the entire year, total revenue is forecasted to be $1.55 billion, a reduction of 6.8% from the previous year, with Market Development contributing $84.16 million (5.4%) and International $504.2 million (32.5%) [8] Market Context - The reliance on international markets presents both opportunities and challenges for Krispy Kreme, making it crucial to monitor international revenue trends for future projections [9] - Wall Street analysts are increasingly focused on international interdependencies and geopolitical factors that may influence earnings forecasts for companies with a global presence [10]
Krispy Kreme (DNUT) Q2 Earnings: Taking a Look at Key Metrics Versus Estimates
ZACKS· 2025-08-07 15:31
Core Insights - Krispy Kreme reported a revenue of $379.77 million for the quarter ended June 2025, reflecting a year-over-year decline of 13.5% and an EPS of -$0.15 compared to $0.05 a year ago [1] - The revenue exceeded the Zacks Consensus Estimate of $376.41 million by 0.89%, while the EPS fell short of the consensus estimate of -$0.04 by 275% [1] Financial Performance - The company’s shares have returned +4.3% over the past month, outperforming the Zacks S&P 500 composite's +1.2% change, and currently holds a Zacks Rank 3 (Hold) [3] - Geographic revenue breakdown shows U.S. revenue at $230.1 million, down 20.5% year-over-year, while International revenue was $132.76 million, up 6% year-over-year [4] Access Points and Estimates - Total Global Points of Access stood at 18,113, slightly below the average estimate of 18,447 [4] - Specific access points in the U.S. included 6 Doughnut Factories, 68 Fresh Shops, and 9,869 DFD Doors, with most figures aligning closely with analyst estimates [4]
Why Krispy Kreme Stock Is Plummeting Today
The Motley Fool· 2025-07-29 18:16
Core Viewpoint - Krispy Kreme's stock is experiencing a significant decline as the momentum from its recent meme stock status fades, with investors awaiting key macroeconomic news regarding interest rates [1][3][4] Group 1: Stock Performance - Krispy Kreme's share price fell by 8.8% during trading, with a peak decline of 10% earlier in the day [1][3] - Despite the recent pullback, Krispy Kreme's stock is still up approximately 41.5% over the last month, primarily driven by meme stock trading [4] Group 2: Market Sentiment - The decline in Krispy Kreme's valuation is not due to any specific business news but follows substantial valuation gains that were disconnected from the company's fundamentals [2] - Investors are currently betting that the Federal Reserve will maintain interest rates, which contrasts with earlier expectations of rate cuts, impacting the stock's performance [3] Group 3: Future Outlook - If the Federal Reserve decides not to cut interest rates in its upcoming meeting, Krispy Kreme's share price may experience further significant declines [4] - The potential for a resurgence in meme stock momentum exists, but the stock is considered too risky for most investors at this time [4]
Why Krispy Kreme Stock Sank Today
The Motley Fool· 2025-07-29 00:16
Core 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].
Krispy Kreme Stock Sell-Off: Should You Buy the Dip?
The Motley Fool· 2025-07-28 04:23
Company Overview - Krispy Kreme is a popular doughnut brand in the U.S., operating over 1,400 stores and selling products through thousands of grocers and convenience stores globally, generating over $1.66 billion in revenue last year [3] - The company has faced significant challenges, including a 66% decline from its September peak and a 77% drop from its 2022 high, despite a recent uptick in stock price due to meme stock popularity [1][2] Recent Developments - The partnership with McDonald's, which initially seemed promising, ended in May 2023, potentially impacting Krispy Kreme's revenue significantly [4] - The decision to cut dividend payments has raised concerns about the company's financial health, alongside the divestiture of its stake in Insomnia Cookies, which has also affected reported revenue [5] Financial Health - As of the end of Q1 2025, Krispy Kreme has over $1.5 billion in long-term liabilities, a significant amount for a company with $1.76 billion in revenue that is struggling to break even [6] - The company is attempting to de-leverage its balance sheet by reducing debt, which poses challenges as it seeks to expand while also cutting back on certain operations [8] Strategic Challenges - Analysts predict that Krispy Kreme will remain unprofitable this year and next due to the fallout from failed partnerships and the costs associated with debt repayment [9] - The shift from in-house to outsourced logistics may increase operational costs, further complicating the company's financial situation [9] Market Sentiment - The stock has gained attention as a meme stock, which can lead to short-term price fluctuations driven by social media influence, but this adds to the uncertainty surrounding its long-term viability [12][14] - Despite the potential for future recovery, the current state of the company suggests that there are better investment opportunities available, given the risks associated with its ongoing struggles [17]
2 Bargain Stocks That Could Double Your Money
The Motley Fool· 2025-07-26 09:36
Group 1: Krispy Kreme - Krispy Kreme's stock has declined 67% over the past year due to weak financial results and the suspension of dividends [1][4] - The company reported a loss of $33 million in Q1 on $375 million of revenue, which was down 15% year-over-year [5] - Management is restructuring and expanding the number of locations, aiming for 100,000 purchase locations in the future, with a 21% year-over-year increase in global points of access [5][6] - The company has nearly $1 billion in debt and only $18.7 million in cash, but generated $42 million in cash from operations over the trailing 12 months [6] - Strategies to improve sales include reducing discount reliance, careful marketing spending, and partnering with grocery stores for high-volume sales [7][8] - Analysts project Krispy Kreme's annual revenue could reach $2.7 billion by 2029, with potential stock price increases to $16 if trading at a P/S multiple of 1 [9] Group 2: Lululemon Athletica - Lululemon's stock is trading 57% below recent highs due to slowing growth and competition, yet its financial results suggest a stronger position than perceived [2][11] - The company has a trailing 12-month revenue of $10.7 billion, indicating significant growth potential in the athletic apparel industry [11] - Despite increased competition, Lululemon has maintained revenue growth, outperforming industry leaders like Nike [12][14] - The economic environment has impacted sales, but Lululemon's revenue grew 7% year-over-year last quarter, contrasting with Nike's decline [13] - Lululemon's gross margin improved to 58.3% in fiscal Q1 2025, indicating strong brand strength [16] - The company has $1.3 billion in cash and no debt, positioning it well to navigate sluggish sales trends [17] - The stock is trading at 15 times this year's earnings estimate, suggesting potential for significant growth as the company expands into new categories and international markets [18]
Krispy Kreme: A Meme Stock Sugar Rush or a Sustainable Treat?
MarketBeat· 2025-07-24 20:42
Core Viewpoint - Krispy Kreme is experiencing significant market volatility driven by a short squeeze, with trading volume surging from an average of five million shares to 150 million in one day, leading to double-digit price gains [1][2][4] Group 1: Market Dynamics - The stock had a high short interest, with over 28% of its publicly available shares being shorted, setting the stage for a short squeeze [2][3] - The limited public float, due to JAB Holding Company's significant ownership, contributed to rapid price increases when retail investors coordinated buying [3][4] Group 2: Strategic Business Changes - Krispy Kreme's management is implementing a disciplined strategy focused on long-term profitability rather than aggressive growth [5][16] - The decision to terminate the partnership with McDonald's was a strategic move to avoid unprofitable ventures, signaling a focus on financial health [6][7] - The company is addressing its cost structure by outsourcing logistics and closing 5-10% of its least profitable distribution locations to enhance operational efficiency [8][9] Group 3: Global Expansion Strategy - Krispy Kreme is pursuing a capital-light global growth strategy through franchising, with successful launches like the one in Brazil generating $100,000 in sales within two days [10][11] - The company is considering refranchising in markets like the UK and Australia to expand without risking capital, using proceeds to strengthen its balance sheet [11][14] Group 4: Financial Outlook - Analysts have a consensus price target of $7.58 for Krispy Kreme, indicating a potential upside of 75.14% from current levels [13] - The elimination of the dividend is a strategic move to preserve cash for debt reduction, aiming to lower the company's debt-to-equity ratio of 0.83 [14] - The upcoming second-quarter earnings report on August 7 will provide insights into the financial impact of the new strategy [15]
Krispy Kreme: The Meme-Stock Surge Offers An Opportunity To Cut Losses (Downgrade)
Seeking Alpha· 2025-07-23 22:11
Summary of Krispy Kreme, Inc. Developments - Krispy Kreme, Inc. experienced significant stock price increases, with shares closing up 26.7% on July 22nd and an additional 4.6% on July 23rd, indicating strong market interest and potential investor confidence [1] Industry Insights - The focus on cash flow and the companies that generate it is emphasized, particularly in the oil and natural gas sector, suggesting a trend towards valuing companies based on their financial performance and growth prospects [1]