Krispy Kreme Stock Rises 11.5% Amid Mixed Analyst Ratings and Q1 Earnings Report

On Tuesday, Krispy Kreme, Inc. (NASDAQ: DNUT) experienced an 11.5% increase in its stock price, reaching a high of $3.61 and closing at $3.64, up from the previous close of $3.26. Approximately 1,281,879 shares traded, which is a decline from the average daily volume of 2,802,115 shares. Several equity research analysts recently updated their ratings for Krispy Kreme: Citigroup lowered its target price from $4.75 to $3.60 with a "neutral" rating on May 9; Bank of America reduced its target price from $7.00 to $6.00 but maintained a "buy" rating; Morgan Stanley dropped its price target from $3.00 to $2.50 with an "overweight" rating on July 14; BNP Paribas Exane downgraded the stock from "outperform" to "neutral" with a $3.50 target; and JPMorgan Chase Co. reiterated a "neutral" rating on May 14. Overall, analysts' consensus shows five hold ratings, four buy ratings, and one strong buy rating, resulting in an average rating of "Moderate Buy" with an average target price of $8.29. Financially, Krispy Kreme has a quick ratio of 0.28, current ratio of 0.35, debt-to-equity ratio of 0.83, market capitalization of $669.67 million, a PE ratio of 30.58, and a beta of 1.29. The company's 50-day simple moving average is $2.98, compared to its 200-day average of $5.28. The latest quarterly earnings report, dated May 8, showed an earnings per share of -$0.05, meeting consensus estimates, and revenue of $375.18 million, slightly below the $383.97 million expected. The company posted a negative net margin of 1.36% and a negative return on equity of 2.13%, with revenue decreasing 15.2% year-over-year. For the same quarter last year, Krispy Kreme earned $0.07 per share. Sell-side analysts forecast an EPS of $0.07 for the current year. This mix of recent analyst rating adjustments and the earnings report likely influenced the stock’s notable increase on Tuesday.

Krispy Kreme (NASDAQ: DNUT), an omnichannel business selling doughnuts, coffee, and branded pastries through its own stores, digital platforms, franchises, and retail outlets, has experienced a significant stock price decline over the past year ending July 22, 2025. The stock fell approximately 74% from a high of $12.68 on November 6, 2024, to $3.26, while the S&P 500 increased by about 13.6% during the same period. Key factors contributing to this decline include a series of disappointing revenue and earnings reports, an $11 million cybersecurity incident in late 2024, challenging consumer market conditions, management's decision in May 2025 to suspend dividends and withdraw full-year guidance, and uncertainty surrounding the rollout of Krispy Kreme products in over 2,400 McDonald's U.S. locations.

Despite the challenges, Krispy Kreme reported 5% organic revenue growth in 2024, totaling $1.66 billion, even after the cybersecurity loss. However, in Q1 2025, net revenue dropped 15.3% year-over-year to $375.2 million, impacted by the sale of Insomnia Cookies and reduced consumer spending. For Q2 2025, management forecasts revenues between $370 million and $385 million with adjusted EBITDA of $30 million to $35 million but has refrained from issuing full-year guidance due to uncertainty.

Analysts have mixed views on Krispy Kreme’s stock. BNP Paribas Exane downgraded it from "outperform" to "neutral" with a $3.50 price target, implying a 15.25% downside from current levels. Other recent analyst actions include JPMorgan Chase maintaining a "neutral" rating, Morgan Stanley lowering its price target from $3.00 to $2.50 with an "overweight" rating, Bank of America reducing target price from $7.00 to $6.00 with a "buy" rating, Citigroup cutting its target from $4.75 to $3.60 with a "neutral" rating, and Truist Financial downgrading from "buy" to "hold."

On May 8, 2025, for Q1 earnings, Krispy Kreme posted a loss per share of $0.05 matching analyst expectations, with revenue below estimates at $375.18 million versus $383.97 million expected. The company had a negative net margin of 1.36% and a negative return on equity of 2.13%. Its current financial ratios include a quick ratio of 0.28, current ratio of 0.35, and debt-to-equity ratio of 0.83. The stock traded up 11.5% on a recent Tuesday, reaching $3.64 with trading volume of approximately 1.28 million shares, though the 50-day and 200-day moving averages stand at $2.98 and $5.28 respectively. Market capitalization is around $670 to $705 million with a PE ratio near 31 and beta 1.29.

Krispy Kreme continues to expand its distribution and plans growth through new shop openings domestically and internationally, enhanced retail penetration, digital subscription innovation, and new product introductions, although competition remains intense from major chains like Dunkin and Starbucks and numerous independent bakeries.