Krispy Kreme (NASDAQ:DNUT) Sees Strong Trading Volume Following Better-Than-Expected Earnings

Key Points

• Krispy Kreme beat earnings expectations: Third-quarter EPS was $0.06 versus analyst estimates of about $0.01–$0.02, and revenue also topped estimates.
• Shares rose as trading picked up: The stock traded at $4.416 after a prior close of $3.52, while volume ran 13% above its daily average. The company also raised its revenue outlook, citing continued turnaround progress.
• Challenges remain: Revenue fell 12.4% year over year and the company reported a negative net margin. Analysts’ consensus rating is “Reduce,” with a $4.33 price target.

Krispy Kreme, Inc. (NASDAQ:DNUT - Get Free Report) saw an uptick in trading volume on Thursday following a better than expected earnings announcement. 2,866,096 shares were traded during mid-day trading, an increase of 13% from the average daily volume of 2,542,971 shares. The stock last traded at $4.4160 and had previously closed at $3.52.

The company reported $0.06 earnings per share for the quarter, beating analysts' consensus estimates of $0.01 by $0.05. Krispy Kreme had a negative return on equity of 1.17% and a negative net margin of 6.16%. During the same period in the prior year, the company posted $0.01 EPS. The business's revenue for the quarter was down 12.4% on a year-over-year basis.

Key Headlines Impacting Krispy Kreme

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

• Positive Sentiment: Krispy Kreme reported third-quarter EPS of $0.06, above analyst estimates of roughly $0.01–$0.02 and up from $0.01 a year earlier. Revenue also exceeded estimates. Krispy Kreme surpasses Q3 earnings and revenue estimates
• Positive Sentiment: The company raised its revenue guidance, saying progress on its turnaround is continuing. The improved outlook may have bolstered investor confidence. Krispy Kreme raises revenue outlook as turnaround takes hold
• Negative Sentiment: Revenue was down 12.4% from a year earlier, and the company continued to report a negative net margin. The sales contraction and ongoing losses remain risks despite the earnings beat. Krispy Kreme third-quarter results

Analysts Set New Price Targets

A number of equities analysts have issued reports on DNUT shares. Wall Street Zen cut Krispy Kreme from a "hold" rating to a "sell" rating in a report on Saturday, August 8th. Evercore set a $4.00 price target on Krispy Kreme in a research note on Friday, August 7th. Zacks Research upgraded shares of Krispy Kreme from a "strong sell" rating to a "hold" rating in a research report on Tuesday, October 27th. Finally, Weiss Ratings downgraded shares of Krispy Kreme from a "sell (d-)" rating to a "sell (e+)" rating in a research report on Friday, October 16th. One investment analyst has rated the stock with a Buy rating, one has given a Hold rating and two have issued a Sell rating to the company's stock. According to data from MarketBeat, Krispy Kreme has a consensus rating of "Reduce" and a consensus price target of $4.33.

Hedge Funds Weigh In On Krispy Kreme

Several institutional investors and hedge funds have recently made changes to their positions in the company. Allworth Financial LP increased its holdings in shares of Krispy Kreme by 83.7% in the second quarter. Allworth Financial LP now owns 7,031 shares of the company's stock worth $25,000 after acquiring an additional 3,204 shares in the last quarter. AXQ Capital LP raised its position in shares of Krispy Kreme by 44.5% during the second quarter. AXQ Capital LP now owns 22,600 shares of the company's stock worth $80,000 after purchasing an additional 6,955 shares during the period. State of Alaska Department of Revenue acquired a new stake in shares of Krispy Kreme during the third quarter worth about $27,000. Apollon Wealth Management LLC bought a new position in shares of Krispy Kreme during the 1st quarter valued at about $35,000. Finally, Coastal Bridge Advisors LLC bought a new position in shares of Krispy Kreme during the 2nd quarter valued at about $37,000. Institutional investors and hedge funds own 81.72% of the company's stock.

Krispy Kreme Price Performance

The company has a current ratio of 0.36, a quick ratio of 0.29 and a debt-to-equity ratio of 1.28. The company has a fifty day moving average price of $3.11 and a two-hundred day moving average price of $3.34. The firm has a market cap of $796.32 million, a P/E ratio of -8.15 and a beta of 1.29.

Krispy Kreme Company Profile

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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