Why Krispy Kreme's Stock Is Tanking Today

Core Viewpoint - Krispy Kreme's shares declined by approximately 24% following disappointing fourth-quarter earnings and fiscal 2025 guidance [1] Financial Performance - Adjusted earnings were reported at $0.01, missing Wall Street estimates of$0.10, while revenue was $404 million, below the consensus estimate of$414 million [2] - For fiscal year 2025, the company guided revenue between $1.55 billion and$1.65 billion and adjusted earnings per share between $0.04 and$0.08, again falling short of consensus expectations [2] Revenue Growth and Challenges - The company reported organic revenue growth of about 2% year over year during the quarter [3] - A cybersecurity incident impacted online ordering, resulting in a revenue hit of $11 million and$3 million in remediation expenses [3] - The decision to sell a majority stake in Insomnia Cookies had a $101 million impact on revenue [3] Market Sentiment and Future Outlook - Despite the challenges, Krispy Kreme achieved 5% organic revenue growth in fiscal 2024 and established a new partnership with McDonald's for donut delivery, which shows potential [4] - Analysts remain optimistic about price targets for the stock, but the recent earnings report may lead to lower targets and decreased investor confidence [4] - Given concerns about consumer strength, it may be prudent to monitor the stock rather than make immediate purchases [4]