Krispy Kreme (NASDAQ:DNUT) Downgraded to Sell Rating by Wall Street Zen

Key Points

• Wall Street Zen downgraded Krispy Kreme (NASDAQ:DNUT) from “hold” to “sell,” adding to a mixed analyst outlook. The stock now has a consensus rating of “hold” with an average target price of $4.63.
• The company’s latest quarter showed continued pressure on profitability, with EPS of -$0.05 missing expectations and revenue of $367.03 million falling 2.2% year over year. Krispy Kreme also reported a negative net margin and negative return on equity.
• Despite the downgrade, management signaled improving turnaround momentum, including a 38% jump in adjusted EBITDA and guidance for 2026 system-wide sales growth of 2% to 4%. The company also expects adjusted EBITDA of $140 million to $150 million next year.

Krispy Kreme (NASDAQ:DNUT - Get Free Report) was downgraded by investment analysts at Wall Street Zen from a "hold" rating to a "sell" rating in a research note issued on Saturday.

A number of other equities research analysts also recently commented on DNUT. Capital One Financial upgraded Krispy Kreme from an "equal weight" rating to an "overweight" rating and set a $6.00 target price on the stock in a research report on Thursday, March 26th. Zacks Research upgraded Krispy Kreme from a "hold" rating to a "strong-buy" rating in a research report on Friday, March 27th. Weiss Ratings restated a "sell (d)" rating on shares of Krispy Kreme in a research report on Friday, March 27th. Finally, Morgan Stanley restated an "underweight" rating and issued a $3.00 target price on shares of Krispy Kreme in a research report on Tuesday, January 20th. One research analyst has rated the stock with a Strong Buy rating, three have issued a Buy rating, one has issued a Hold rating and three have assigned a Sell rating to the stock. Based on data from MarketBeat.com, the stock presently has a consensus rating of "Hold" and an average target price of $4.63.

Krispy Kreme Price Performance

NASDAQ:DNUT opened at $3.60 on Friday. Krispy Kreme has a 52 week low of $2.50 and a 52 week high of $5.73. The company has a quick ratio of 0.32, a current ratio of 0.38 and a debt-to-equity ratio of 1.40. The company has a market capitalization of $620.57 million, a P/E ratio of -1.20 and a beta of 1.32. The stock's fifty day moving average is $3.53 and its two-hundred day moving average is $3.72.

Krispy Kreme (NASDAQ:DNUT - Get Free Report) last posted its earnings results on Thursday, May 7th. The company reported ($0.05) EPS for the quarter, missing analysts' consensus estimates of ($0.03) by ($0.02). Krispy Kreme had a negative net margin of 33.36% and a negative return on equity of 4.25%. The business had revenue of $367.03 million during the quarter, compared to analysts' expectations of $359.42 million. During the same quarter in the prior year, the firm earned ($0.05) EPS. Krispy Kreme's revenue for the quarter was down 2.2% compared to the same quarter last year. Equities analysts expect that Krispy Kreme will post -0.01 EPS for the current year.

Institutional Investors Weigh In On Krispy Kreme

A number of institutional investors have recently modified their holdings of the company. R Squared Ltd grew its stake in shares of Krispy Kreme by 48.0% in the first quarter. R Squared Ltd now owns 34,012 shares of the company's stock valued at $115,000 after buying an additional 11,029 shares in the last quarter. Abel Hall LLC acquired a new stake in shares of Krispy Kreme in the first quarter valued at $45,000. AdvisorShares Investments LLC acquired a new stake in shares of Krispy Kreme in the first quarter valued at $102,000. Apollon Wealth Management LLC acquired a new stake in shares of Krispy Kreme in the first quarter valued at $35,000. Finally, Alpine Global Management LLC acquired a new stake in shares of Krispy Kreme in the fourth quarter valued at $92,000. 81.72% of the stock is owned by institutional investors and hedge funds.

Key Krispy Kreme News

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

• Positive Sentiment: Krispy Kreme reported a 38% jump in adjusted EBITDA, indicating its turnaround efforts are improving margins and profitability. Krispy Kreme 1Q Adjusted EBITDA Jumps 38% Amid Turnaround
• Positive Sentiment: The company said it expects 2026 system-wide sales to rise 2% to 4% to more than $2 billion and guided to $140 million to $150 million in adjusted EBITDA, signaling confidence in the recovery. Krispy Kreme projects 2026 system-wide sales up 2% to 4% to over $2B while targeting $140M to $150M in adjusted EBITDA
• Positive Sentiment: Management highlighted “significant progress” on the turnaround, with narrowing losses and expanding margins suggesting the business is becoming more efficient. Krispy Kreme Narrows Loss, Sees Growth Returning as Turnaround Advances
• Neutral Sentiment: The company also leaned into seasonal marketing, bringing back Mother's Day-themed mini and special-flavor doughnuts, which may help near-term sales but is not a major financial catalyst. Krispy Kreme releases special flavors for Mother's Day
• Negative Sentiment: Q1 EPS came in at a loss of $0.05 per share, wider than the $0.03 loss analysts expected, showing profitability remains under pressure. Krispy Kreme (DNUT) shares rise despite quarterly earnings and revenue miss
• Negative Sentiment: Revenue fell 2.2% year over year to $367 million, and the company guided 2026 revenue below Wall Street’s expectation, which could limit upside if growth does not accelerate. Krispy Kreme Reports First Quarter 2026 Financial Results Demonstrating Significant Progress on Turnaround

About Krispy Kreme

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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