The Krispy Kreme share $DNUT (+6,02%) 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 (+2,76%) and Walmart $WMT (-3,53%) and Walmart.