Krispy Kreme (NASDAQ:DNUT) Hits New 1-Year Low - Here's What Happened

Key Points

• Krispy Kreme shares fell to a new 52-week low of $2.81 during Friday trading, below the previous close of $2.95.
• Analyst sentiment is broadly negative: three analysts rate the stock a Sell, one rates it a Buy, and the consensus rating is “Reduce” with a $4.33 price target.
• The company met quarterly EPS expectations at a loss of $0.03 but reported revenue of $331 million, down 12.8% year over year, while maintaining negative net margins and return on equity.

Shares of Krispy Kreme, Inc. (NASDAQ:DNUT - Get Free Report) reached a new 52-week low during mid-day trading on Friday. The company traded as low as $2.81 and last traded at $2.82, with a volume of 3,979,786 shares. The stock had previously closed at $2.95.

Wall Street Analyst Weigh In

Several analysts recently commented on the stock. Evercore set a $4.00 price objective on shares of Krispy Kreme in a research report on Friday, August 7th. Weiss Ratings downgraded shares of Krispy Kreme from a "sell (d-)" rating to a "sell (e+)" rating in a report on Friday, October 16th. Zacks Research lowered shares of Krispy Kreme from a "hold" rating to a "strong sell" rating in a report on Thursday, August 6th. Finally, Wall Street Zen cut Krispy Kreme from a "hold" rating to a "sell" rating in a research report on Saturday, August 8th. One analyst has rated the stock with a Buy rating and three have issued a Sell rating to the company. Based on data from MarketBeat, the company currently has an average rating of "Reduce" and a consensus target price of $4.33.

Krispy Kreme Price Performance

The business's fifty day moving average is $3.16 and its two-hundred day moving average is $3.36. The company has a current ratio of 0.36, a quick ratio of 0.29 and a debt-to-equity ratio of 1.28.

Krispy Kreme (NASDAQ:DNUT - Get Free Report) last released its quarterly earnings data on Thursday, August 6th. The company reported ($0.03) earnings per share (EPS) for the quarter, meeting the consensus estimate of ($0.03). Krispy Kreme had a negative net margin of 6.16% and a negative return on equity of 1.17%. The company had revenue of $331.00 million during the quarter, compared to analysts' expectations of $303.35 million. During the same period in the previous year, the company earned ($0.15) EPS. The firm's quarterly revenue was down 12.8% on a year-over-year basis. Research analysts forecast that Krispy Kreme, Inc. will post -0.06 EPS for the current fiscal year.

Hedge Funds Weigh In On Krispy Kreme

Several hedge funds and other institutional investors have recently added to or reduced their stakes in DNUT. Carlyle Group Inc. purchased a new stake in shares of Krispy Kreme in the second quarter valued at approximately $1,203,000. AlpInvest Partners B.V. acquired a new position in Krispy Kreme during the second quarter worth $2,231,000. BlackRock Inc. purchased a new position in Krispy Kreme during the 2nd quarter valued at about $23,353,000. Lazard Asset Management LLC acquired a new position in shares of Krispy Kreme in the first quarter valued at approximately $1,883,000. Finally, Hsbc Holdings PLC purchased a new stake in shares of Krispy Kreme during the second quarter worth $24,992,000. 81.72% of the stock is owned by hedge funds and other institutional investors.

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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