Krispy Kreme (NASDAQ: DNUT) fell in pre-market trading after the doughnut company and coffeehouse chain reported Q3 earnings that missed estimates. The company reported adjusted earnings of $0.03 per share in Q3 while it broke even in the same quarter last year. Analysts were expecting DNUT to report adjusted earnings of $0.06 per share.
The company’s net revenues increased by 7.9% year-over-year to $407.4 million but fell short of analysts’ estimates of $413.9 million.
Krispy Kreme’s CEO Mike Tattersfield commented, “We expect to open in Ecuador and France in the fourth quarter taking our new market openings to seven in 2023. We are also excited about our continued partnership with McDonald’s, which we believe has validated the attractiveness of the quick-service restaurant channel.”
Looking forward, management reiterated its FY23 outlook and expects revenues to be in the range of $1.65 billion to $1.68 billion, an increase between 8% and 10% year-over-year while adjusted earnings are likely to be between $0.31 and $0.34 per share.
Is DNUT a Good Stock to Buy?
Analysts are cautiously optimistic about DNUT stock with a Moderate Buy consensus rating based on two Buys and four Holds. The average DNUT price target of $14.92 implies an upside potential of 11% at current levels.
