Current Financial Status: Krispy Kreme is facing significant financial challenges, with a low current ratio of 0.36 and ongoing operating losses, despite a profitable U.S. fresh delivery model and plans for international franchise growth.
Deleveraging Strategy: The company is aggressively working to deleverage its balance sheet by closing unprofitable locations, which may hinder revenue growth in the short term but is seen as necessary for long-term sustainability.
Stock Performance: Krispy Kreme's stock has been volatile, down 54% this year but rebounding nearly 70% from its summer lows, largely driven by meme trading rather than solid fundamentals.
Investment Caution: Analysts recommend caution for potential investors, highlighting that Krispy Kreme was not included in a list of top stock picks, suggesting there may be better investment opportunities available.
DNUT
$4.56+Infinity%1D
Analyst Views on DNUT
Wall Street analysts forecast DNUT stock price to fall over the next 12 months. According to Wall Street analysts, the average 1-year price target for DNUT is 4.33 USD with a low forecast of 3.00 USD and a high forecast of 6.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
5 Analyst Rating
Wall Street analysts forecast DNUT stock price to fall over the next 12 months. According to Wall Street analysts, the average 1-year price target for DNUT is 4.33 USD with a low forecast of 3.00 USD and a high forecast of 6.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
1 Buy
3 Hold
1 Sell
Hold
Current: 4.640
Low
3.00
Averages
4.33
High
6.00
Current: 4.640
Low
3.00
Averages
4.33
High
6.00
JPMorgan
Neutral -> Underweight
downgrade
$NULL
2025-08-27
Reason
JPMorgan
Price Target
$NULL
2025-08-27
downgrade
Neutral -> Underweight
Reason
JPMorgan downgraded Krispy Kreme (DNUT) to Underweight from Neutral without a price target. The company is in "survivor mode" following the cancelled launch at McDonald's (MCD), the analyst tells investors in a research note. The firm believes Krispy Kreme's proposed turnaround plan brings execution risk as declining trends in the U.S. business limit its visibility.
BNP Paribas Exane
Outperform -> Neutral
downgrade
$3.50
2025-07-21
Reason
BNP Paribas Exane
Price Target
$3.50
2025-07-21
downgrade
Outperform -> Neutral
Reason
BNP Paribas Exane downgraded Krispy Kreme to Neutral from Outperform with a $3.50 price target.
BofA
Buy
downgrade
$7 -> $6
2025-07-18
Reason
BofA
Price Target
$7 -> $6
2025-07-18
downgrade
Buy
Reason
BofA lowered the firm's price target on Krispy Kreme to $6 from $7 and keeps a Buy rating on the shares. The firm is fine-tuning estimates for 20-plus companies across its restaurant coverage and also adjusting selected price targets to reflect estimate and market multiple changes ahead of earnings from the group.
Morgan Stanley
Overweight
downgrade
$3
2025-07-14
Reason
Morgan Stanley
Price Target
$3
2025-07-14
downgrade
Overweight
Reason
Morgan Stanley lowered the firm's price target on Krispy Kreme to $2.50 from $3 and keeps an Overweight rating on the shares. With industry demand improved, the firm sees a likely better quarter for restaurants and food distributors than Q1, the analyst tells investors in a research note. Ongoing policy noise remains a risk but middle/upper income customer cohorts remain solid, and costs are mostly benign, the firm argues.
About DNUT
Krispy Kreme, Inc. and its subsidiaries operate through its omni-channel business model to produce doughnuts and deliver fresh doughnut experiences for Doughnut Shops, Delivered Fresh Daily (DFD) Doors, and digital channels, expanding consumer access to the Krispy Kreme brand. The Company operates through three segments: U.S., International and Market Development. The U.S. segment includes all Krispy Kreme Company-owned operations in the U.S. The International segment includes all Krispy Kreme Company-owned operations in the U.K., Ireland, Australia, New Zealand, Mexico, Canada, and Japan. The Market Development segment includes franchise operations across the globe. It operates in more than 40 countries through its network of fresh doughnut shops, partnerships with retailers, and a rapidly growing digital business with more than 17,500 fresh points of access.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
