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

Wall Street Zen downgraded shares of Krispy Kreme (NASDAQ:DNUT) from a hold rating to a sell rating in a research report report published on Saturday.

DNUT has been the subject of several other research reports. Weiss Ratings restated a “sell (d)” rating on shares of Krispy Kreme in a research note on Friday, March 27th. Zacks Research upgraded Krispy Kreme from a “hold” rating to a “strong-buy” rating in a research note on Friday, March 27th. Capital One Financial upgraded Krispy Kreme from an “equal weight” rating to an “overweight” rating and set a $6.00 price target for the company in a research note on Thursday, March 26th. Finally, Morgan Stanley restated an “underweight” rating and set a $3.00 price target on shares of Krispy Kreme in a research note on Tuesday, January 20th. One equities research analyst has rated the stock with a Strong Buy rating, three have assigned a Buy rating, one has assigned a Hold rating and three have given a Sell rating to the company’s stock. According to MarketBeat, the company has an average rating of “Hold” and an average target price of $4.63.

Krispy Kreme Stock Performance

Shares of Krispy Kreme stock opened at $3.60 on Friday. The firm has a market capitalization of $620.56 million, a P/E ratio of -1.20 and a beta of 1.32. 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 firm’s 50 day moving average is $3.53 and its two-hundred day moving average is $3.72.

Krispy Kreme (NASDAQ:DNUT) last announced its quarterly earnings results on Thursday, May 7th. The company reported ($0.05) EPS for the quarter, missing the consensus estimate of ($0.03) by ($0.02). The company had revenue of $367.03 million during the quarter, compared to analysts’ expectations of $359.42 million. Krispy Kreme had a negative net margin of 33.36% and a negative return on equity of 4.25%. The business’s revenue for the quarter was down 2.2% on a year-over-year basis. During the same quarter in the prior year, the company earned ($0.05) earnings per share. Research analysts forecast that Krispy Kreme will post -0.01 EPS for the current fiscal year.

Institutional Investors Weigh In On Krispy Kreme

Hedge funds and other institutional investors have recently modified their holdings of the stock. Russell Investments Group Ltd. lifted its position in shares of Krispy Kreme by 1,229.5% during the 3rd 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 during the period. FNY Investment Advisers LLC acquired a new stake in shares of Krispy Kreme during the 4th quarter valued at approximately $40,000. Sage Mountain Advisors LLC acquired a new stake in shares of Krispy Kreme during the 3rd quarter valued at approximately $39,000. Apollon Wealth Management LLC acquired a new stake in shares of Krispy Kreme during the 1st quarter valued at approximately $35,000. Finally, Prudential Financial Inc. purchased a new stake in Krispy Kreme during the second quarter worth $32,000. 81.72% of the stock is currently 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.