Krispy Kreme (DNUT) AI Stock Analysis

• Market Cap: $648.85M
• Dividend Yield: 3.69%
• Average Volume (3M): 11.78M
• Price to Earnings (P/E): ―
• Beta (1Y): 1.44
• Revenue Growth: -11.55%
• EPS Growth: -757.68%
• Country: US
• Employees: 21,000
• Sector: Consumer Defensive
• Sector Strength: 42
• Industry: Grocery Stores
• EPS (TTM): -0.15
• Shares Outstanding: 171,200,000
• 10 Day Avg. Volume: 24,552,243
• 30 Day Avg. Volume: 11,776,071
• 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: 2.90
• Enterprise Value/Revenue: 1.22
• Enterprise Value/Gross Profit: 1.62
• Enterprise Value/Ebitda: -7.03
• 1Y Price Target: $3.23
• Price Target Upside: -14.78% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 6

• Rating: 54 Neutral
• Price Target: $4.00 ▲(5.54% Upside)

Krispy Kreme's overall stock score is driven by financial challenges, including declining revenues and high leverage, which weigh heavily on the score. Technical analysis shows some positive momentum, providing a moderate boost. Valuation is mixed, with a negative P/E ratio but a decent dividend yield. The strategic shift towards a franchise model is promising but not yet reflected in financial improvements.

Positive Factors

Franchise Model Expansion

The shift to a capital-light franchise model can enhance profitability by reducing capital expenditures and expanding market reach through partnerships.

Digital Sales Growth

Strong growth in digital sales reflects successful adaptation to consumer trends, potentially boosting long-term revenue through enhanced customer engagement.

Expansion with Major Retailers

Partnerships with major retailers expand distribution channels, increasing product availability and potentially driving sustained revenue growth.

Negative Factors

Declining Revenues

A trend of declining revenues indicates challenges in maintaining sales growth, which can impact long-term financial health and market competitiveness.

High Leverage

Significant leverage increases financial risk, potentially limiting the company's ability to invest in growth opportunities and manage economic downturns.

Negative Profit Margins

Persistently negative profit margins suggest operational inefficiencies and profitability challenges, which can hinder long-term financial sustainability.

Krispy Kreme Business Overview & Revenue Model

Company Description

Krispy Kreme, Inc. (ticker: DNUT) is a global retailer and wholesaler of doughnuts, coffee, and other beverages. Founded in 1937, the company is renowned for its signature Original Glazed doughnuts and operates in the quick-service restaurant sector, focusing on the production and sale of fresh doughnuts and coffee products. Krispy Kreme operates a mix of company-owned and franchise locations, offering a variety of doughnut flavors, pastries, and beverages to customers both in-store and through various distribution channels.

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 is facing financial challenges with declining revenues, negative profitability, and high leverage. The gross profit margin remains strong, but operational inefficiencies and cash flow issues persist. High debt levels pose a risk to financial stability.

Income Statement

Krispy Kreme's income statement shows a concerning trend with declining revenues and negative profit margins in the TTM period. The gross profit margin remains strong at 75.46%, indicating efficient production, but the net profit margin is deeply negative at -29.34%, reflecting significant losses. Revenue growth has turned negative, indicating a decline in sales compared to previous periods. The EBIT and EBITDA margins are also negative, highlighting operational inefficiencies.

Balance Sheet

The balance sheet reveals a high debt-to-equity ratio of 2.05 in the TTM period, indicating significant leverage and potential financial risk. Return on equity is negative, reflecting the company's inability to generate profits from shareholder investments. The equity ratio is not provided, but the high debt levels suggest a lower proportion of equity in the capital structure.

Cash Flow

Cash flow analysis shows a negative free cash flow, although there is a positive growth rate of 27.19% in the TTM period. The operating cash flow to net income ratio is low at 0.04, indicating weak cash generation relative to net income. The free cash flow to net income ratio is significantly negative, suggesting cash flow challenges.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2020	Dec 2019
Income Statement
Total Revenue	1.54B	1.67B	1.69B	1.12B	959.41M
Gross Profit	1.16B	1.26B	1.24B	242.67M	697.39M
EBITDA	-267.07M	213.43M	135.24M	85.78M	102.38M
Net Income	-451.42M	3.10M	-37.92M	-64.78M	-34.00M
Balance Sheet
Total Assets	2.63B	3.07B	3.24B	3.06B	2.87B
Cash, Cash Equivalents and Short-Term Investments	21.26M	28.96M	38.19M	38.51M	37.40M
Total Debt	1.42B	1.35B	1.40B	1.59B	1.50B
Total Liabilities	1.91B	1.91B	1.98B	2.21B	1.99B
Stockholders Equity	693.59M	1.13B	1.17B	684.68M	734.82M
Cash Flow
Free Cash Flow	-137.23M	-74.96M	-75.88M	-69.15M	4.44M
Operating Cash Flow	-23.07M	45.83M	45.54M	28.68M	80.81M
Investing Cash Flow	115.38M	19.28M	-112.59M	-168.13M	-226.61M
Financing Cash Flow	-97.95M	-73.95M	71.86M	139.44M	129.08M

Krispy Kreme Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 3.79
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For DNUT, the sentiment is Positive. The current price of 3.79 is above the 20-day moving average (MA) of 3.63, above the 50-day MA of 3.50, and below the 200-day MA of 4.51, indicating a neutral trend. The MACD of 0.14 indicates Negative momentum. The RSI at 53.85 is Neutral, neither overbought nor oversold. The STOCH value of 41.71 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for DNUT.

Krispy Kreme Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
VLGEA	―	$418.54M	8.43	11.60%	3.18%	3.76%	12.17%
IMKTA	―	$1.29B	24.24	3.58%	0.95%	-7.96%	-64.67%
NGVC	―	$886.26M	21.03	23.58%	1.24%	8.51%	40.83%
Sector *	―	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%
GO	―	$1.41B	180.83	0.68%	―	8.47%	-85.17%
DDL	―	$414.03M	9.27	44.96%	―	15.34%	389.40%
DNUT	―	$648.85M	―	-49.24%	3.69%	-11.55%	-757.68%

Krispy Kreme Corporate Events

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.

Krispy Kreme’s Q2 2025 Results and Turnaround Strategy

Krispy Kreme, Inc., a renowned global sweet treat brand, is known for its iconic Original Glazed doughnuts and operates in the food and beverage industry across more than 40 countries through its network of fresh doughnut shops and partnerships with leading retailers.