Krispy Kreme (NASDAQ:DNUT) Stock Falls 15.5% – Time to Sell?

Shares of Krispy Kreme, Inc. (NASDAQ:DNUT) were down 15.5% during trading on Friday. The stock traded as low as $3.92 and last traded at $3.8850. Approximately 1,144,198 shares were traded during mid-day trading, a decline of 57% from the average daily volume of 2,666,553 shares. The stock had previously closed at $4.60.

Krispy Kreme News Roundup

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

• Positive Sentiment: Third-quarter adjusted earnings were $0.06 per share, above analyst estimates, while revenue of $328.76 million also topped expectations. The company raised its 2026 revenue outlook, saying its turnaround is progressing. Krispy Kreme Raises Revenue Outlook as Turnaround Takes Hold
• Positive Sentiment: The asset-light shift may improve the business’s economics: franchisees generated 42% of systemwide sales in Q3, and year-to-date capital expenditures fell 65% to $28.6 million. Krispy Kreme: 3 Key Takeaways for Long-Term Investors
• Neutral Sentiment: The new holiday doughnut collection, including a Ghirardelli hot-cocoa-inspired flavor, could support seasonal interest, though its financial impact is unclear. Krispy Kreme Just Turned Ghirardelli Hot Cocoa Into a Doughnut
• Negative Sentiment: Revenue was down 12.4% from a year earlier, and the company remained unprofitable, with a negative net margin. Those figures underscore that the turnaround has not yet resolved the underlying operating challenges.
• Negative Sentiment: Traders bought 4,003 DNUT put options, about 23% above the average daily volume. This may indicate increased hedging or bearish caution, although options activity alone does not establish a market direction.

Analysts Set New Price Targets

A number of research analysts have recently commented on the company. Weiss Ratings downgraded Krispy Kreme from a “sell (d-)” rating to a “sell (e+)” rating in a research report on Friday, October 16th. Evercore set a $4.00 price objective on Krispy Kreme in a research note on Friday, August 7th. Zacks Research upgraded Krispy Kreme from a “strong sell” rating to a “hold” rating in a research report on Tuesday, October 27th. Finally, Wall Street Zen lowered Krispy Kreme from a “hold” rating to a “sell” rating in a research note on Saturday, August 8th. One analyst has rated the stock with a Buy rating, one has issued a Hold rating and two have assigned a Sell rating to the company. According to MarketBeat.com, the company has an average rating of “Reduce” and a consensus target price of $4.33.

Krispy Kreme Price Performance

The company has a debt-to-equity ratio of 1.28, a current ratio of 0.36 and a quick ratio of 0.29. The firm has a market cap of $724.94 million, a P/E ratio of -7.54 and a beta of 1.29. The stock’s 50-day simple moving average is $3.13 and its two-hundred day simple moving average is $3.34.

Krispy Kreme (NASDAQ:DNUT) last announced its earnings results on Thursday, November 5th. The company reported $0.06 earnings per share for the quarter, beating the consensus estimate of $0.01 by $0.05. The business had revenue of $328.76 million for the quarter, compared to the consensus estimate of $311.41 million. Krispy Kreme had a negative net margin of 6.16% and a negative return on equity of 1.17%. The business’s revenue for the quarter was down 12.4% on a year-over-year basis. During the same quarter in the prior year, the firm posted $0.01 earnings per share. Equities research analysts forecast that Krispy Kreme, Inc. will post -0.06 earnings per share for the current fiscal year.

Hedge Funds Weigh In On Krispy Kreme

Several hedge funds have recently added to or reduced their stakes in DNUT. Hsbc Holdings PLC purchased a new stake in Krispy Kreme in the 2nd quarter worth about $24,992,000. BlackRock Inc. purchased a new position in shares of Krispy Kreme during the second quarter valued at approximately $23,353,000. AlpInvest Partners B.V. purchased a new position in shares of Krispy Kreme during the second quarter valued at approximately $2,231,000. Squarepoint Ops LLC grew its stake in shares of Krispy Kreme by 138.5% during the second quarter. Squarepoint Ops LLC now owns 566,309 shares of the company’s stock valued at $1,999,000 after buying an additional 328,885 shares during the last quarter. Finally, Lazard Asset Management LLC bought a new position in shares of Krispy Kreme during the first quarter valued at approximately $1,883,000. 81.72% of the stock is currently owned by 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.