Krispy Kreme (NASDAQ:DNUT) Shares Up 7.2% - Should You Buy?

Key Points

• Krispy Kreme shares rose 7.2% to about $3.52 in Friday trading, though volume was 35% below the average daily level.
• The company’s limited-time Pokémon doughnut collaboration launching August 18 could boost brand visibility, store visits and appeal among younger consumers, but its revenue and profitability impact remains uncertain.
• Analyst sentiment is cautious: the consensus rating is “Reduce,” with two Buy ratings versus four Sell ratings and an average price target of $4.33. Krispy Kreme reported revenue above estimates but still posted a net loss, while revenue declined 12.8% year over year.

Krispy Kreme, Inc. (NASDAQ:DNUT - Get Free Report) was up 7.2% during mid-day trading on Friday . The stock traded as high as $3.53 and last traded at $3.5150. 1,656,360 shares changed hands during trading, a decline of 35% from the average daily volume of 2,541,394 shares. The stock had previously closed at $3.28.

Trending Headlines about Krispy Kreme

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

• Positive Sentiment: Krispy Kreme is launching a limited-time Pokémon Doughnut Collection beginning August 18 at participating U.S. locations to celebrate Pokémon’s 30th anniversary. The collection features doughnuts inspired by popular characters and is designed to appeal to fans and encourage sharing and repeat visits. Krispy Kreme Pokémon collection announcement
• Positive Sentiment: The collaboration is receiving extensive coverage across food, entertainment and lifestyle media, increasing visibility for Krispy Kreme and potentially attracting younger consumers and Pokémon enthusiasts. Promotional offers, including free or discounted doughnuts in select markets, may further drive store visits. QSR Web article
• Neutral Sentiment: The rollout also extends to Canada and is available only for a limited time and at participating locations. While the campaign could support same-store sales and brand momentum, the articles provide no estimate of incremental revenue, profitability or customer demand. Krispy Kreme Pokémon collection in Canada

Wall Street Analyst Weigh In

A number of research analysts have weighed in on the stock. Evercore set a $4.00 target price on shares of Krispy Kreme in a research note on Friday, August 7th. Zacks Research lowered Krispy Kreme from a "hold" rating to a "strong sell" rating in a research report on Thursday, August 6th. Wall Street Zen cut Krispy Kreme from a "hold" rating to a "sell" rating in a report on Saturday, August 8th. Finally, Weiss Ratings lowered Krispy Kreme from a "sell (d)" rating to a "sell (e+)" rating in a research note on Tuesday. Two equities research analysts have rated the stock with a Buy rating and four have assigned a Sell rating to the company's stock. Based on data from MarketBeat.com, the company has a consensus rating of "Reduce" and an average target price of $4.33.

Krispy Kreme Trading Up 5.6%

The company has a quick ratio of 0.29, a current ratio of 0.36 and a debt-to-equity ratio of 1.28. The company's 50-day moving average is $3.45 and its 200-day moving average is $3.41. The stock has a market capitalization of $597.37 million, a price-to-earnings ratio of -6.19 and a beta of 1.27.

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

Insiders Place Their Bets

In other Krispy Kreme news, Director Bernardo Hees bought 235,875 shares of the business's stock in a transaction on Tuesday, June 2nd. The stock was bought at an average price of $3.39 per share, with a total value of $799,616.25. Following the completion of the purchase, the director directly owned 1,229,037 shares in the company, valued at $4,166,435.43. The trade was a 23.75% increase in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. Insiders purchased 880,190 shares of company stock valued at $2,973,833 in the last ninety days. Corporate insiders own 1.60% of the company's stock.

Hedge Funds Weigh In On Krispy Kreme

A number of hedge funds have recently modified their holdings of DNUT. AQR Capital Management LLC purchased a new stake in Krispy Kreme in the 1st quarter valued at about $217,000. Millennium Management LLC boosted its stake in Krispy Kreme by 522.1% during the first quarter. Millennium Management LLC now owns 2,093,416 shares of the company's stock worth $10,300,000 after buying an additional 1,756,932 shares during the period. Creative Planning boosted its stake in Krispy Kreme by 568.2% during the second quarter. Creative Planning now owns 67,074 shares of the company's stock worth $195,000 after buying an additional 57,036 shares during the period. Legal & General Group Plc increased its position in shares of Krispy Kreme by 44.0% during the second quarter. Legal & General Group Plc now owns 137,268 shares of the company's stock valued at $399,000 after acquiring an additional 41,929 shares during the last quarter. Finally, Prudential Financial Inc. purchased a new stake in shares of Krispy Kreme in the 2nd quarter valued at approximately $32,000. 81.72% of the stock is currently owned by hedge funds and other institutional investors.

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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.

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