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Why Krispy Kreme Stock Crashed Again Today
DNUTKrispy Kreme(DNUT) The Motley Fool·2025-02-26 16:55

Core Viewpoint - Krispy Kreme's stock has experienced significant declines following disappointing Q4 earnings, leading analysts to lower their price targets substantially [1][2][3] Financial Performance - Krispy Kreme missed both revenue and earnings expectations in Q4, which has raised concerns among analysts [3] - The company's revenue guidance for 2025 is lower than its 2024 performance, contradicting previous expectations of strong demand and growth [3] Analyst Reactions - Piper Sandler analyst Brian Mullan reduced his price target for Krispy Kreme by 33% to 12pershare[2]MorganStanleysanalystsweremoredrastic,cuttingtheirpricetargetby5012 per share [2] - Morgan Stanley's analysts were more drastic, cutting their price target by 50% to 6 per share [2] Growth Concerns - The company is facing challenges due to a heavy debt load and thin profit margins, making growth essential for its investment appeal [4] - Despite potential growth opportunities, such as partnerships with McDonald's, the lack of significant sales growth is a concern for investors [4]