Krispy Kreme stock hits 52-week low at $5.29 amid sharp decline

Published 28/03/2025, 15:02
Krispy Kreme stock hits 52-week low at $5.29 amid sharp decline

Krispy Kreme , Inc. (NASDAQ:DNUT) shares have tumbled to a 52-week low, touching down at $5.29, as the doughnut company, with a market capitalization of $908 million and annual revenue of $1.67 billion, faces a challenging market environment. Over the past year, the stock has experienced a significant downturn, with a 1-year change showing a steep decline of -65.08%. This latest price level reflects investor concerns and a broader trend of bearish sentiment towards the company’s financial performance and growth prospects. InvestingPro analysis reveals concerning metrics, including a high P/E ratio of 303x and a current ratio of 0.36, indicating potential liquidity challenges. The sharp year-over-year drop has left shareholders and market watchers closely monitoring the company’s strategies for recovery and stabilization in the face of headwinds affecting the broader food and beverage industry. For deeper insights into DNUT’s financial health and future prospects, InvestingPro subscribers can access 8 additional key ProTips and a comprehensive Pro Research Report.

In other recent news, Krispy Kreme has announced its expansion into Brazil with the opening of its first store in São Paulo, through a joint venture with AmPm, the country’s largest convenience store chain. This move is part of the company’s international franchise growth strategy, expected to create around 100 direct jobs initially. In financial updates, JPMorgan has adjusted its price target for Krispy Kreme shares to $8.00, maintaining an Overweight rating, while Morgan Stanley (NYSE:MS) downgraded the stock to Underweight with a new price target of $6.00, citing concerns over the company’s ability to meet its 2025 guidance. Truist Securities also revised its price target to $12, maintaining a Buy rating, and noted that Krispy Kreme’s fourth-quarter performance was in line with their estimates, excluding a cyber incident impact.

Additionally, Krispy Kreme has appointed Nicola J. Steele as the new Chief Operating Officer, following her successful tenure in Australia and New Zealand. Steele’s appointment reflects the company’s focus on leadership development and internal promotion. Meanwhile, Krispy Kreme’s ongoing partnerships with major retailers such as McDonald’s (NYSE:MCD) and Walmart (NYSE:WMT) continue to progress, with expectations to expand presence significantly by the end of 2025. Despite these strategic moves, analysts express concerns about execution risks and the need for operational expertise, as highlighted by the recent cybersecurity incident impacting business operations.

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