‘Shocked’ Truist downgrades Krispy Kreme after Q1 report

Truist downgraded Krispy Kreme (DNUT) to Hold from Buy without a price target post the Q1 report The firm is “shocked by the speed at which the story fell apart.” The analyst no longer has high conviction in management’s previously stated strategy and execution of Krispy Kreme’s initiatives. It will likely take several quarters before investors can regain confidence, the analyst tells investors in a research note. The firm points out the company is reevaluating the McDonald’s (MCD) rollout and withdrew its fiscal 2025 guidance. The stock in morning trading is down 24%, or $1.04, to $3.30.