Dimensional Fund Advisors LP Reduces Stock Position in Krispy Kreme, Inc. $DNUT

Key Points

• Dimensional Fund Advisors reduced its Krispy Kreme stake by 22%, selling 968,688 shares and retaining 3.43 million shares worth approximately $11.6 million. Institutional investors collectively own 81.72% of DNUT.
• Krispy Kreme reported quarterly revenue of $331 million, above the $303.35 million analyst consensus, while its $0.03-per-share loss matched expectations. However, revenue declined 12.8% year over year and the company remains unprofitable.
• Analyst sentiment is broadly negative: Zacks Research and Wall Street Zen downgraded the stock to “strong sell” and “sell,” respectively. DNUT has a “Reduce” consensus rating and a $4.33 average price target, versus a recent price of $3.34.

Dimensional Fund Advisors LP cut its holdings in Krispy Kreme, Inc. (NASDAQ:DNUT - Free Report) by 22.0% in the 1st quarter, according to the company in its most recent filing with the Securities and Exchange Commission. The firm owned 3,429,497 shares of the company's stock after selling 968,688 shares during the period. Dimensional Fund Advisors LP owned 1.99% of Krispy Kreme worth $11,626,000 as of its most recent SEC filing.

Other hedge funds have also bought and sold shares of the company. Prudential Financial Inc. bought a new position in Krispy Kreme in the 2nd quarter worth about $32,000. Russell Investments Group Ltd. boosted its position in shares of Krispy Kreme by 1,229.5% in the third quarter. Russell Investments Group Ltd. now owns 8,469 shares of the company's stock valued at $33,000 after acquiring an additional 7,832 shares during the period. Captrust Financial Advisors purchased a new position in Krispy Kreme during the second quarter valued at approximately $34,000. Apollon Wealth Management LLC purchased a new position in Krispy Kreme during the first quarter valued at approximately $35,000. Finally, Raymond James Financial Inc. bought a new stake in Krispy Kreme during the 2nd quarter worth approximately $37,000. 81.72% of the stock is currently owned by hedge funds and other institutional investors.

Key Krispy Kreme News

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

• Positive Sentiment: Krispy Kreme launched a fall-themed lineup featuring pumpkin spice doughnuts and lattes. The seasonal offerings could support customer traffic, sales, and brand engagement in the coming months. Ready for fall? Krispy Kreme rolling out pumpkin spice doughnuts, lattes
• Positive Sentiment: The company’s latest quarter included revenue of $331 million, exceeding the $303.35 million analyst consensus, while its loss of $0.03 per share matched expectations. Year-over-year revenue declined, but the revenue beat may be supporting the stock’s recent resilience.
• Neutral Sentiment: Investors are focused on whether Krispy Kreme can improve productivity and operating efficiency. The company remains unprofitable, with analysts expecting a full-year loss, making execution on cost control and store economics important for valuation. Krispy Kreme Faces A Crucial Productivity Test
• Neutral Sentiment: A comparison with Restaurant Brands International highlights Krispy Kreme’s smaller scale, weaker profitability, and more leveraged balance sheet. The comparison does not represent a new company-specific catalyst, but it underscores the risks facing DNUT investors. Comparing Restaurant Brands International and Krispy Kreme
• Negative Sentiment: Zacks Research downgraded Krispy Kreme from “hold” to “strong sell,” adding pressure to the investment outlook. Krispy Kreme Downgrade Report
• Negative Sentiment: Wall Street Zen also downgraded DNUT to a sell rating, reinforcing concerns about ongoing losses, declining revenue, and balance-sheet constraints. Krispy Kreme Downgraded to Sell Rating

Insider Activity

In related news, Director Bernardo Hees acquired 25,002 shares of the company's stock in a transaction dated Friday, June 5th. The stock was bought at an average cost of $3.49 per share, with a total value of $87,256.98. Following the acquisition, the director owned 1,574,635 shares of the company's stock, valued at approximately $5,495,476.15. The trade was a 1.61% increase in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through the SEC website. Over the last ninety days, insiders have acquired 880,190 shares of company stock worth $2,973,833. Insiders own 1.60% of the company's stock.

Krispy Kreme Stock Performance

Shares of DNUT opened at $3.34 on Monday. The firm's 50 day simple moving average is $3.46 and its 200 day simple moving average is $3.41. The company has a market capitalization of $575.82 million, a P/E ratio of -5.96 and a beta of 1.27. The company has a debt-to-equity ratio of 1.28, a current ratio of 0.36 and a quick ratio of 0.29. Krispy Kreme, Inc. has a 1-year low of $2.88 and a 1-year high of $5.11.

Krispy Kreme (NASDAQ:DNUT - Get Free Report) last released its quarterly earnings results on Thursday, August 6th. The company reported ($0.03) EPS for the quarter, hitting analysts' consensus estimates of ($0.03). Krispy Kreme had a negative net margin of 6.16% and a negative return on equity of 1.17%. The business had revenue of $331.00 million during the quarter, compared to analysts' expectations of $303.35 million. During the same quarter in the previous year, the company earned ($0.15) EPS. The business's quarterly revenue was down 12.8% compared to the same quarter last year. Sell-side analysts forecast that Krispy Kreme, Inc. will post -0.07 earnings per share for the current fiscal year.

Analysts Set New Price Targets

Several analysts have issued reports on the stock. Evercore set a $4.00 target price on shares of Krispy Kreme in a research note on Friday. Zacks Research lowered shares of Krispy Kreme from a "hold" rating to a "strong sell" rating in a research report on Thursday. Wall Street Zen cut shares of Krispy Kreme from a "hold" rating to a "sell" rating in a report on Saturday. Finally, Weiss Ratings reiterated a "sell (d)" rating on shares of Krispy Kreme in a research report on Wednesday, June 24th. Two equities research analysts have rated the stock with a Buy rating and four have given a Sell rating to the stock. Based on data from MarketBeat, the company has a consensus rating of "Reduce" and a consensus price target of $4.33.

Krispy Kreme Company Profile

Krispy Kreme Doughnuts, Inc NASDAQ: DNUT is a global retailer and wholesaler renowned for its signature Original Glazed doughnut and a variety of other sweet treats. The company operates through a combination of company-owned stores, franchise outlets and strategic partnerships with supermarkets, convenience stores and other foodservice channels. In addition to its doughnut portfolio, Krispy Kreme offers freshly brewed coffee, assorted beverages and proprietary seasonal items designed to drive traffic and foster brand loyalty.

Founded in 1937 in Winston-Salem, North Carolina, by Vernon Rudolph, Krispy Kreme has grown from a single local shop to a multinational brand.

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