The Krispy Kreme share $DNUT (-6,63 %) hit a record low on Tuesday after the company fell well short of Wall Street expectations. The share price fell by as much as 27% as fourth quarter sales fell 10.4% to $404 million. A key factor was the sale of the majority stake in Insomnia Cookies, which resulted in a USD 101 million drop in sales. In addition, a cyber attack cost the company a further USD 11 million.
CEO Josh Charlesworth explained that although the results were in line with expectations, they were heavily impacted by the cyber incident. Krispy Kreme is now targeting sales growth of 5% to 7% for the 2025 financial year - less than analysts' forecasts.
The share price closed at USD 6.61, down 47% on the previous year. While the S&P 500 gained 17% in the same period, the company is trying to focus investors on long-term profitable growth. Krispy Kreme also plans to expand its distribution points in the USA through partnerships with companies such as McDonald's $MCD (+1,08 %) and Walmart $WMT (-0,86 %) and Walmart.
For a second time I hit $4,000 in my portfolio. I’m 15 years old and I’ve been trading for over a year now. I was down $1,100 all-time back in April, but all the companies in my portfolio have skyrocketed over the last 2 months so I am now a little more than $100 away from breaking even all-time.
The plan I have for the near-future is to sell a large portion of $RIVN (+4,45 %) and invest that money into other companies. $RIVN (+4,45 %) makes up a huge percentage of my portfolio and was the main cause of my $1,100 loss back in April so I don’t want to risk such a large amount of money with one company. Also, Rivian doubled in value over the last 3 months so I don’t see that being sustainable long term.
To me the company just seems so undervalued. A few months ago they announced that starting in the 2nd half of this year they’ll start putting Krispy Kreme donuts in McDonald’s and plan to be in thousands of McDonald’s by the end of 2026.
Some articles I’ve read from big analysts stated that they believe McDonald’s is just the start of Krispy Kreme partnerships and that the McDonald’s partnership could generate more than $300 million yearly which is huge for a $1.8 billion dollar company.
Currently Krispy Kreme is less than a dollar away from their all-time low with the average analyst prediction being $20, nearly a 100 percent upside.
