While the phrase “free doughnuts” is enough to inspire the ardor of most any good American—especially on the Fourth of July—it did not do nearly so well for doughnut maker Krispy Kreme (DNUT). In fact, between that and the loss of their Chief Financial Officer, Krispy Kreme shares were in open revolt, as shareholders sent them down nearly 4% in Thursday afternoon’s trading.
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Former CFO Jeremiah Ashukian is departing Krispy Kreme, as he took a “…new opportunity with a private company,” reports noted. Which company that was was not revealed, but we do know that Ashukian’s replacement is Raphael Duvivier. Duvivier has been the international president of Krispy Kreme since January, and will step in to Ashukian’s role starting July 11.
That was not all, either. Krispy Kreme’s chief growth officer, David Skena, is also departing for other opportunities. He will be replaced by Alison Holder, current chief product officer, who will now be chief brand and product officer at the company. Skena’s departure comes not long after an attempted growth deal with McDonald’s (MCD) fell through after it proved little help to Krispy Kreme’s bottom line.
Now We Talk About the Free Doughnuts
Yes, indeed, Krispy Kreme is planning a doughnut giveaway for the Fourth of July, which is about as American as it is possible to be without a shotgun being involved somehow. You will need to be in costume for this one, coming into a Krispy Kreme shop wearing red, white and blue. Once you have done that—and assuming you are doing it at a participating location—you will receive one free Original Glazed doughnut.
Just to top it off, Krispy Kreme also rolled out a whole new doughnut collection that features America-themed decorations and flavors. These include the Freedom Ring Doughnut, the USA Party Doughnut, and the Vanilla Cookies & Kreme Liberty Crunch Doughnut. Known as the Stars, Stripes & Sweetness Collection, it should—according to departing growth officer Dave Skena—be “…the perfect addition to sweeten your Fourth of July celebrations and make the day a blast.”
Is Krispy Kreme a Buy, Sell or Hold?
Turning to Wall Street, analysts have a Hold consensus rating on DNUT stock based on one Buy, five Holds, and one Sell assigned in the past three months, as indicated by the graphic below. After a 66.34% loss in its share price over the past year, the average DNUT price target of $4.65 per share implies 39.85% upside potential.
