Krispy Kreme (NASDAQ:DNUT) Upgraded at Wall Street Zen

Key Points

• Wall Street Zen upgraded Krispy Kreme from “sell” to “hold,” though the broader analyst consensus remains “reduce,” with an average price target of $4.33.
• Krispy Kreme beat quarterly earnings and revenue estimates and raised its 2026 revenue outlook, but revenue fell 12.4% year over year and the company remained unprofitable.
• The company’s asset-light strategy is gaining traction: franchisees generated 42% of systemwide sales in Q3, while year-to-date capital spending declined 65%.

Krispy Kreme (NASDAQ:DNUT - Get Free Report) was upgraded by research analysts at Wall Street Zen from a "sell" rating to a "hold" rating in a report released on Saturday, Wall Street Zen reports.

Several other brokerages have also commented on DNUT. Weiss Ratings lowered Krispy Kreme from a "sell (d-)" rating to a "sell (e+)" rating in a research report on Friday, October 16th. Zacks Research raised shares of Krispy Kreme from a "strong sell" rating to a "hold" rating in a research note on Tuesday, October 27th. Finally, Evercore set a $4.00 target price on shares of Krispy Kreme in a research note on Friday, August 7th. One research analyst has rated the stock with a Buy rating, one has assigned a Hold rating and two have given a Sell rating to the company's stock. Based on data from MarketBeat.com, Krispy Kreme presently has a consensus rating of "Reduce" and an average target price of $4.33.

Krispy Kreme Price Performance

Shares of DNUT opened at $4.17 on Friday. The stock's fifty day moving average is $3.14 and its 200-day moving average is $3.34. The company has a debt-to-equity ratio of 1.28, a quick ratio of 0.29 and a current ratio of 0.36. Krispy Kreme has a one year low of $2.81 and a one year high of $5.03. The firm has a market capitalization of $718.91 million, a price-to-earnings ratio of -7.87 and a beta of 1.29.

Krispy Kreme (NASDAQ:DNUT - Get Free Report) last posted its earnings results on Thursday, November 5th. The company reported $0.06 EPS for the quarter, beating the consensus estimate of $0.01 by $0.05. The firm had revenue of $328.76 million during the quarter, compared to the consensus estimate of $311.41 million. Krispy Kreme had a negative return on equity of 1.17% and a negative net margin of 6.16%. The business's quarterly revenue was down 12.4% on a year-over-year basis. During the same period last year, the company earned $0.01 earnings per share. Equities analysts anticipate that Krispy Kreme will post -0.06 EPS for the current year.

Institutional Inflows and Outflows

Several hedge funds and other institutional investors have recently made changes to their positions in the stock. Hsbc Holdings PLC acquired a new position in shares of Krispy Kreme during the 2nd quarter worth about $24,992,000. BlackRock Inc. bought a new stake in shares of Krispy Kreme during the second quarter valued at approximately $23,353,000. AlpInvest Partners B.V. acquired a new stake in shares of Krispy Kreme during the 2nd quarter worth about $2,231,000. Squarepoint Ops LLC boosted its position in Krispy Kreme by 138.5% during the second quarter. Squarepoint Ops LLC now owns 566,309 shares of the company's stock valued at $1,999,000 after acquiring an additional 328,885 shares during the last quarter. Finally, Lazard Asset Management LLC bought a new position in shares of Krispy Kreme in the 1st quarter worth $1,883,000. Institutional investors own 81.72% of the company's stock.

Krispy Kreme News Summary

Here are the key news stories impacting Krispy Kreme this week:

• Positive Sentiment: Third-quarter adjusted earnings were $0.06 per share, above estimates of about $0.01–$0.02, while revenue of $328.76 million also topped forecasts. The company raised its 2026 revenue outlook, citing continued turnaround progress. Bloomberg article
• Positive Sentiment: The shift toward an asset-light model is reducing investment needs: franchisees accounted for 42% of systemwide sales in Q3, and year-to-date capital spending fell 65% to $28.6 million. These changes could support cash flow and profitability if the strategy continues to gain traction. The Motley Fool article
• Neutral Sentiment: Traders bought 4,003 DNUT put options, about 23% above the average daily volume. This may reflect increased hedging or bearish positioning, but options volume alone does not establish traders’ outlook.
• Negative Sentiment: Despite the earnings beat, revenue declined 12.4% year over year and the company continues to report a net loss. The stock’s pullback may also reflect profit-taking after its strong initial reaction to the results.

About Krispy Kreme

Krispy Kreme, Inc is a global doughnut and coffee company best known for its Original Glazed doughnuts. The company sells doughnuts, packaged sweets, coffee and other beverages through Krispy Kreme shops, in-store retail displays and digital ordering channels.

Krispy Kreme operates a hub-and-spoke distribution model that combines doughnut-making hubs and shops with delivery to grocery stores, convenience stores and other retail locations. Its products are also distributed through partnerships and branded locations, allowing the company to expand its reach beyond traditional Krispy Kreme shops.

Founded in 1937 in Winston-Salem, North Carolina, by Vernon Rudolph, Krispy Kreme has grown into an international brand serving customers in the United States and various markets across North America, Europe, Asia and Oceania.

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