Krispy Kreme (NASDAQ:DNUT) Shares Gap Up - Should You Buy?

Key Points

• Shares gapped up premarket after results showed signs of a turnaround—adjusted EBITDA rose ~38% and management reported narrowing losses, expanded margins from store rationalizations and cost actions, plus new promotions aimed at boosting traffic.
• Offsetting risks include a GAAP EPS miss (loss $0.05 vs. ~$0.03 expected) and ~2.2% YoY revenue decline due to store closures and the end of a McDonald’s arrangement, along with conservative FY‑2026 revenue guidance (~$1.3–$1.4B) and mixed analyst ratings (consensus "Hold", $4.42 target).

Krispy Kreme, Inc. (NASDAQ:DNUT - Get Free Report) shares gapped up before the market opened on Thursday . The stock had previously closed at $3.68, but opened at $4.03. Krispy Kreme shares last traded at $3.6150, with a volume of 1,428,009 shares traded.

Key Stories Impacting Krispy Kreme

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

• Positive Sentiment: Adjusted EBITDA jumped ~38% in Q1, reflecting improving core profitability as the turnaround advances. Krispy Kreme 1Q Adjusted EBITDA Jumps 38% Amid Turnaround
• Positive Sentiment: Management highlighted narrowing losses and expanded margins, citing progress from strategic actions (store rationalizations and cost moves). Krispy Kreme Narrows Loss, Sees Growth Returning as Turnaround Advances
• Positive Sentiment: New product/promotional activity (Mother’s Day specials, return of a fan‑favorite line and a “Minis for Mom” collection) could help near-term traffic and digital engagement. Krispy Kreme Just Brought Back a Fan-Favorite Doughnut Line With 2 New Treats
• Neutral Sentiment: FY‑2026 revenue guidance range was updated to roughly $1.3B–$1.4B (management’s range versus consensus ~ $1.4B) — guidance is directionally in line but leaves little upside visibility. Krispy Kreme Reports First Quarter 2026 Financial Results Demonstrating Significant Progress on Turnaround
• Negative Sentiment: GAAP EPS missed expectations: reported a ($0.05) loss vs. consensus around ($0.03), which is a clear near-term negative for sentiment. Krispy Kreme (DNUT) Reports Q1 Loss, Beats Revenue Estimates
• Negative Sentiment: Net revenue declined ~2.2% year‑over‑year (to $367M), driven partly by the strategic closure of underperforming doors and the prior McDonald’s arrangement ending — this pressures top‑line growth near term. Krispy Kreme: Q1 Earnings Snapshot

Wall Street Analyst Weigh In

DNUT has been the subject of several analyst reports. Zacks Research upgraded Krispy Kreme from a "hold" rating to a "strong-buy" rating in a report on Friday, March 27th. Weiss Ratings restated a "sell (d)" rating on shares of Krispy Kreme in a report on Friday, March 27th. Wall Street Zen upgraded Krispy Kreme from a "sell" rating to a "hold" rating in a report on Sunday, February 22nd. Capital One Financial upgraded Krispy Kreme from an "equal weight" rating to an "overweight" rating and set a $6.00 target price for the company in a research report on Thursday, March 26th. Finally, Morgan Stanley restated an "underweight" rating and set a $3.00 price objective on shares of Krispy Kreme in a research report on Tuesday, January 20th. One investment analyst has rated the stock with a Strong Buy rating, three have assigned a Buy rating, three have issued a Hold rating and three have given a Sell rating to the stock. According to MarketBeat.com, the company presently has a consensus rating of "Hold" and a consensus target price of $4.42.

Krispy Kreme Stock Down 1.1%

The company has a debt-to-equity ratio of 1.40, a quick ratio of 0.32 and a current ratio of 0.38. The company has a market cap of $627.46 million, a price-to-earnings ratio of -1.20 and a beta of 1.32. The stock's fifty day moving average is $3.52 and its two-hundred day moving average is $3.71.

Krispy Kreme (NASDAQ:DNUT - Get Free Report) last posted its quarterly earnings data on Thursday, February 26th. The company reported $0.09 EPS for the quarter, beating the consensus estimate of $0.03 by $0.06. Krispy Kreme had a negative net margin of 33.87% and a negative return on equity of 3.66%. The firm had revenue of $392.37 million during the quarter, compared to analyst estimates of $386.72 million. During the same quarter last year, the business posted $0.01 EPS. The company's revenue for the quarter was down 2.9% on a year-over-year basis. Sell-side analysts predict that Krispy Kreme, Inc. will post -0.01 earnings per share for the current fiscal year.

Institutional Trading of Krispy Kreme

Several institutional investors and hedge funds have recently made changes to their positions in the stock. Russell Investments Group Ltd. raised its holdings in shares of Krispy Kreme by 1,229.5% during 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 in the last quarter. FNY Investment Advisers LLC bought a new stake in shares of Krispy Kreme during the fourth quarter valued at approximately $40,000. Sage Mountain Advisors LLC bought a new stake in shares of Krispy Kreme during the third quarter valued at approximately $39,000. Apollon Wealth Management LLC purchased a new stake in Krispy Kreme in the first quarter worth approximately $35,000. Finally, Prudential Financial Inc. purchased a new position in shares of Krispy Kreme during the 2nd quarter worth $32,000. Hedge funds and other institutional investors own 81.72% of the company's stock.

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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