Krispy Kreme (DNUT) AI Stock Analysis

• Market Cap: $676.64M
• Dividend Yield: 3.66%
• Average Volume (3M): 11.83M
• Price to Earnings (P/E): ―
• Beta (1Y): 1.45
• Revenue Growth: -10.40%
• EPS Growth: -1904.10%
• Country: US
• Employees: 21,000
• Sector: Consumer Defensive
• Sector Strength: 42
• Industry: Grocery Stores
• EPS (TTM): 0.01
• Shares Outstanding: 171,300,000
• 10 Day Avg. Volume: 6,559,074
• 30 Day Avg. Volume: 11,831,994
• PEG Ratio: -4.84
• Price to Book (P/B): 1.43
• Price to Sales (P/S): 0.97
• P/FCF Ratio: -21.57
• Enterprise Value/Market Cap: 2.98
• Enterprise Value/Revenue: 1.31
• Enterprise Value/Gross Profit: 2.10
• Enterprise Value/Ebitda: -5.98
• 1Y Price Target: $4.33
• Price Target Upside: 17.98% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 5
• EPS Forecast (FY): -0.21
• Revenue Forecast (FY): $1.52B

• Rating: 53 Neutral
• Price Target: $4.00 ▲(8.99% Upside)

Krispy Kreme's overall stock score reflects significant financial challenges, with declining revenues and profitability being the most critical factors. Despite these issues, technical indicators show some short-term bullish momentum, and the earnings call provided positive insights into the company's turnaround efforts. The valuation remains a concern due to negative earnings, but the dividend yield offers some investor appeal. The company's strategic initiatives and international growth provide a slightly positive outlook, but substantial improvements are needed for a stronger financial position.

Positive Factors

International Market Expansion

Expansion into international markets like Canada, Japan, and Mexico indicates potential for sustainable growth and diversification of revenue streams.

Positive Free Cash Flow

Generating positive free cash flow enhances financial flexibility, allowing for reinvestment in growth initiatives and debt reduction.

Strategic Customer Growth

Partnerships with major retailers expand distribution channels, increasing brand visibility and driving sales growth.

Negative Factors

Decline in U.S. Organic Revenue

Declining U.S. revenue indicates challenges in the domestic market, potentially affecting overall financial performance and growth.

Overall Revenue Decline

A decline in overall revenue suggests underlying issues in sales strategy or market demand, impacting long-term growth prospects.

Weak Cash Generation

Weak cash generation limits the company's ability to invest in growth and manage financial obligations, posing risks to financial health.

Krispy Kreme Business Overview & Revenue Model

Company Description

Krispy Kreme, Inc., together with its subsidiaries, operates through an omni-channel business model to provide doughnut experiences and produce doughnuts. The company operates through three segments: U.S. and Canada, International, and Market Development. It also produces cookies, brownies, cookie cakes, ice cream, cookie-wiches, and cold milk, as well as doughnut mixes, other ingredients, and doughnut-making equipment. As of January 2, 2022, the company had 1,810 Krispy Kreme and Insomnia Cookies-branded shops in approximately 30 countries worldwide, which include 971 company owned and 839 franchised. It serves through doughnut shops, delivered fresh daily outlets, ecommerce, and delivery business. The company was formerly known as Krispy Kreme Doughnuts, Inc. and changed its name to Krispy Kreme, Inc. in May 2021. Krispy Kreme, Inc. was founded in 1937 and is headquartered in Charlotte, North Carolina.

How the Company Makes Money

Krispy Kreme generates revenue primarily through the sale of its doughnuts and beverages at retail locations. Its revenue model includes direct sales from company-owned stores and franchise royalties from franchisee operations. Key revenue streams consist of in-store sales, wholesale distribution to grocery chains and convenience stores, and special event catering. The company also benefits from partnerships with various retailers and coffee distributors to expand its market reach and product availability. Additionally, Krispy Kreme engages in promotional collaborations and limited-time offers that drive traffic and customer engagement, contributing to its overall earnings.

Krispy Kreme Financial Statement Overview

Summary

Krispy Kreme faces significant financial challenges. The income statement shows declining revenues and profitability, with a negative revenue growth rate of -29.7% and a deeply negative net profit margin of -33.27%. The balance sheet reflects improved leverage but poor returns on equity, with a negative ROE of -56.71%. Cash flow analysis reveals weak cash generation, with negative free cash flow and a low operating cash flow to net income ratio. The company needs to focus on reversing revenue declines, improving operational efficiency, and enhancing cash flow.

Income Statement

Krispy Kreme's income statement reveals significant challenges. The TTM data shows a negative revenue growth rate of -29.7%, indicating a substantial decline in sales. The gross profit margin remains relatively high at 75.36%, but the net profit margin is deeply negative at -33.27%, reflecting significant losses. Both EBIT and EBITDA margins are negative, highlighting operational inefficiencies. The company needs to address its declining revenues and improve profitability to enhance its financial health.

Balance Sheet

The balance sheet shows a mixed picture. The debt-to-equity ratio has improved to 0.79 in the TTM period, indicating better leverage management compared to previous years. However, the return on equity is negative at -56.71%, reflecting poor profitability relative to shareholder equity. The equity ratio stands at 25.82%, suggesting a moderate level of equity financing. Overall, while leverage has improved, profitability remains a concern.

Cash Flow

Cash flow analysis indicates significant challenges. The TTM free cash flow is negative, and the free cash flow growth rate is -28%, showing a deterioration in cash generation. The operating cash flow to net income ratio is low at 0.036, and the free cash flow to net income ratio is highly negative, indicating that the company is struggling to convert its earnings into cash. Improving cash flow generation is critical for financial stability.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.53B	1.67B	1.69B	1.53B	1.38B	1.12B
Gross Profit	960.28M	1.26B	1.24B	1.12B	1.03B	242.67M
EBITDA	-337.49M	213.43M	135.24M	136.20M	140.52M	85.78M
Net Income	-510.43M	3.10M	-37.92M	-15.62M	-24.51M	-64.78M
Balance Sheet
Total Assets	2.60B	3.07B	3.24B	3.15B	3.15B	3.06B
Cash, Cash Equivalents and Short-Term Investments	31.15M	28.96M	38.19M	35.37M	38.56M	38.51M
Total Debt	1.44B	1.35B	1.40B	1.24B	1.18B	1.59B
Total Liabilities	1.91B	1.91B	1.98B	1.85B	1.81B	2.21B
Stockholders Equity	672.05M	1.13B	1.17B	1.20B	1.23B	684.68M
Cash Flow
Free Cash Flow	-98.81M	-74.96M	-75.88M	28.10M	21.73M	-69.15M
Operating Cash Flow	15.95M	45.83M	45.54M	139.82M	141.22M	28.68M
Investing Cash Flow	-22.05M	19.28M	-112.59M	-120.88M	-153.41M	-168.13M
Financing Cash Flow	15.80M	-73.95M	71.86M	-17.43M	16.10M	139.44M

Krispy Kreme Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 3.67
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For DNUT, the sentiment is Negative. The current price of 3.67 is below the 20-day moving average (MA) of 3.92, above the 50-day MA of 3.63, and below the 200-day MA of 4.14, indicating a neutral trend. The MACD of 0.08 indicates Positive momentum. The RSI at 46.15 is Neutral, neither overbought nor oversold. The STOCH value of 20.19 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for DNUT.

Krispy Kreme Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
VLGEA	67 Neutral	$450.61M	8.89	11.60%	2.96%	3.76%	12.17%
IMKTA	66 Neutral	$1.37B	24.95	3.58%	0.89%	-7.96%	-64.67%
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%
DDL	61 Neutral	$375.01M	9.99	33.36%	―	8.54%	40.44%
NGVC	58 Neutral	$719.84M	16.51	23.58%	1.53%	8.51%	40.83%
DNUT	53 Neutral	$676.64M	―	-55.07%	3.66%	-10.40%	-1904.10%
GO	51 Neutral	$1.09B	―	-0.37%	―	7.22%	-108.99%

Krispy Kreme Corporate Events

Krispy Kreme’s Earnings Call: Turnaround Progress

Krispy Kreme’s recent earnings call painted a picture of cautious optimism as the company continues its turnaround journey. The sentiment was slightly positive, buoyed by notable financial improvements and strategic growth initiatives, despite facing challenges in the U.S. market, such as a decline in organic revenue and overall revenue due to strategic exits from unprofitable partnerships.

Krispy Kreme Reports Q3 2025 Financial Results

Krispy Kreme, Inc. is a globally recognized brand in the sweet treats industry, known for its iconic Original Glazed® doughnut, operating through a network of fresh doughnut shops, retail partnerships, and a growing digital presence across more than 40 countries.

Krispy Kreme Appoints New Chief Accounting Officer

On August 28, 2025, Krispy Kreme announced the appointment of Joseph J. Esposito as the new Chief Accounting Officer, effective September 15, 2025, following the resignation of Kelly McBride. Esposito, who has been with the company since 2020, brings extensive experience from his previous roles at PwC and within Krispy Kreme’s tax department. His compensation package includes a base salary, bonus opportunities, and participation in the company’s long-term incentive plan, indicating a strategic move to strengthen the company’s financial leadership.

The most recent analyst rating on (DNUT) stock is a Hold with a $3.50 price target. To see the full list of analyst forecasts on Krispy Kreme stock, see the DNUT Stock Forecast page.

Krispy Kreme’s Earnings Call: Growth Amid Challenges

Krispy Kreme’s recent earnings call painted a mixed picture of the company’s current standing and future prospects. While there are promising developments in international franchise growth, U.S. marketing, and digital retail expansion, the company faces significant challenges. These include a decline in adjusted EBITDA, substantial impairment charges, and a net revenue decrease. The termination of the McDonald’s USA partnership further underscored strategic difficulties.