Krispy Kreme (NASDAQ:DNUT), the iconic doughnut company, has seen its stock price tumble to a 52-week low, touching $9.17. According to InvestingPro data, technical indicators suggest the stock is in oversold territory. This latest price point reflects a significant downturn from the company's performance over the past year, with Krispy Kreme's stock experiencing a 1-year change of -32.46%, while maintaining a beta of 1.36. Investors and market analysts are closely monitoring the stock as it navigates through a challenging economic landscape that has impacted consumer discretionary spending and investor sentiment towards the food and beverage sector. The company's efforts to revitalize its brand and financial health are now under more scrutiny as it deals with the pressures of maintaining profitability and shareholder value in a competitive market. Despite these challenges, InvestingPro analysis shows the company remains profitable with $1.71 billion in revenue over the last twelve months, though it operates with a significant debt burden and short-term obligations exceeding liquid assets. Get access to 10+ additional exclusive ProTips and comprehensive analysis through the Pro Research Report.
In other recent news, Krispy Kreme has experienced several significant developments. Truist Securities has maintained its Buy rating on Krispy Kreme shares, projecting steady growth in sales for FY25 and FY26. The firm's updated forecast sets the FY24 sales and EBITDA at approximately $1.677 billion and $205.8 million, respectively. Additionally, the company's Chief Growth Officer and President, International, Matthew Spanjers, is set to resign around December 31, 2024, as per a recent SEC filing.
In terms of financial performance, Krispy Kreme reported a net revenue of $380 million for Q3 2024, marking its 17th consecutive quarter of growth. However, due to the sale of a majority stake in Insomnia Cookies, the company's adjusted EBITDA declined by 20.7%. The company now anticipates full-year revenue to be between $1.65 billion and $1.685 billion.
Lastly, Krispy Kreme announced the successful launch of its doughnuts in McDonald's (NYSE:MCD) Chicago locations, with plans to expand this partnership to nearly 2,000 locations by the end of the year. This is part of the company's larger goal to expand consumer access to 35,000 points across 50 countries within three years.
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