Krispy Kreme (DNUT)

[winston]

Krispy Kreme, Inc. (DNUT): A Bull Case Theory

by Ricardo Pillai

With Krispy Kreme rolling out into 2,000 McDonald's locations by the end of 2024 and a projected expansion to 12,000 locations by 2026, even conservative estimates suggest a substantial revenue uplift.

If just 2% of McDonald’s customers buy a donut, this translates into $177 million in annual revenue, while higher adoption rates could push this to over $700 million, representing up to 42.5% of Krispy Kreme’s current annual revenue.

Beyond McDonald's, Krispy Kreme is aggressively expanding its presence in major retail chains such as Walmart, Kroger, Target, and Costco in the U.S., as well as Tesco and Sainsbury's in the UK, with further expansion planned into Germany, Spain, and Brazil.

Financially, the company is delivering impressive results, with operating income skyrocketing 521.68% year-over-year to $81.72 million, and key liabilities declining across the board.

Net income has turned positive for the first time since 2018, reinforcing Krispy Kreme’s financial turnaround.

The company has achieved 18 consecutive quarters of year-over-year organic sales growth, further underscoring its momentum.

Source: Insider Monkey

https://finance.yahoo.com/news/krispy-k ... 39978.html

[winston]

vested

DNUT Stock Overview

Undervalued with moderate growth potential.

Rewards
Trading at 23.5% below our estimate of its fair value
Earnings are forecast to grow 50.5% per year
Became profitable this year
Trading at good value compared to peers and industry

Risk Analysis
Debt is not well covered by operating cash flow
Dividend of 2.59% is not well covered by earnings or free cash flows
Large one-off items impacting financial results

Source: Simply Wall St

https://simplywall.st/stocks/us/consume ... ispy-kreme

[winston]

vested

Earnings call transcript: Krispy Kreme Q1 2025 sees EPS miss, stock falls

Key Takeaways
Krispy Kreme’s Q1 2025 EPS missed forecasts, impacting investor sentiment.
Revenue was slightly below expectations, contributing to a stock price drop.
The company is focusing on operational improvements and international expansion.
Full-year outlook has been withdrawn, reflecting uncertainty.
Strategic partnerships and product innovations are ongoing.

Revenue came in at $375.2 million, slightly under the expected $385.11 million.

Financial Highlights
Revenue: $375.2 million, within previous guidance but below forecast.
Earnings per share: Negative $0.05, missing the forecast of negative $0.04.
Adjusted EBITDA: $24 million, representing a 6.4% margin.
Cash used in operating activities: $20.8 million.

Source: investing.com

https://www.investing.com/news/transcri ... CH-4033013

[winston]

vested

Krispy Kreme stock plunged on Thursday after the doughnut chain said it is “reassessing” its rollout with McDonald’s and pulled its full-year outlook in part due to economic “softness.”

Krispy Kreme is not planning to launch its doughnuts in any additional McDonald’s locations in the second quarter, suspending a nationwide rollout.

As of March 30, more than 2,400 of the burger chain’s roughly 13,500 domestic locations carried Krispy Kreme doughnuts.

Source: Phillips

[winston]

vested

Krispy Kreme Stock Tanks After Sales Drop, Dividend Pause, More Downbeat News

by David Marino-Nachison

Krispy Kreme said it would suspend its dividend, citing a desire for "greater financial flexibility," and said it planned to stop bringing its products to more McDonald's (MCD) restaurants "while it works to achieve a profitable business model for all parties."

Decisive action to pay down debt, de-leverage the balance sheet and drive sustainable, profitable growth".

Source: Investopedia

https://finance.yahoo.com/news/krispy-k ... 59653.html