Krispy Kreme stock hits 52-week low at $5.86 amid market challenges

Published 04/03/2025, 15:50
Krispy Kreme stock hits 52-week low at $5.86 amid market challenges

Krispy Kreme (NASDAQ:DNUT), the iconic doughnut company with a market capitalization of $1 billion, has seen its stock price tumble to a 52-week low, touching down at $5.86 USD. According to InvestingPro analysis, the stock’s RSI indicates oversold territory, potentially signaling a buying opportunity for value investors. This latest price level reflects a significant downturn for the company, which has experienced a stark 1-year change with its stock value plummeting by -53.67%. While investors have been digesting a series of market pressures, including a substantial debt burden of $1.35 billion, InvestingPro analysts expect net income growth this year despite these challenges. The 52-week low serves as a critical juncture for Krispy Kreme as it navigates through the current economic landscape, striving to sweeten its position in the market once again. Get access to 13 additional exclusive ProTips and comprehensive financial analysis through InvestingPro’s detailed research reports.

In other recent news, Krispy Kreme has reported its Q4 2024 earnings, which fell short of market expectations. The company posted earnings per share (EPS) of $0.01, missing the forecasted $0.10, and revenue was reported at $404 million, below the expected $416.09 million. In light of these results, Morgan Stanley (NYSE:MS) downgraded Krispy Kreme’s stock rating from Equalweight to Underweight, citing concerns over the company’s ability to meet its 2025 targets and a recent cybersecurity incident that disrupted operations. Concurrently, Truist Securities maintained a Buy rating on the stock but lowered its price target from $15 to $12, highlighting the company’s expansion plans and partnerships, including a significant rollout with McDonald’s (NYSE:MCD) to approximately 6,000 locations by the end of 2025.

In corporate news, Krispy Kreme appointed Nicola J. Steele as the new Chief Operating Officer, effective immediately. Steele, who has been with the company since 2006, will receive an annual base salary of $400,000 and participate in the company’s bonus and long-term incentive programs. The company also faced a cybersecurity incident that affected its Q4 revenue by an estimated $10 million. Despite these challenges, Krispy Kreme aims for significant growth in 2025, with plans to expand distribution partnerships and achieve net revenue between $1,550 million and $1,650 million.

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