Krispy Kreme (NASDAQ:DNUT) Shares Gap Up Following Earnings Beat

Krispy Kreme, Inc. (NASDAQ:DNUT)’s share price gapped up prior to trading on Thursday following a better than expected earnings announcement. The stock had previously closed at $2.99, but opened at $3.67. Krispy Kreme shares last traded at $3.8750, with a volume of 6,608,025 shares trading hands.

The company reported $0.09 EPS for the quarter, topping the consensus estimate of $0.03 by $0.06. Krispy Kreme had a negative net margin of 33.87% and a negative return on equity of 3.45%. The company had revenue of $392.37 million during the quarter, compared to the consensus estimate of $386.72 million. During the same period in the previous year, the firm posted $0.01 earnings per share. The company’s revenue for the quarter was down 2.9% compared to the same quarter last year.

Key Headlines Impacting Krispy Kreme

Here are the key news stories impacting Krispy Kreme this week:

• Positive Sentiment: EPS and profit metrics beat expectations — Krispy Kreme reported $0.09 EPS vs. ~ $0.03 consensus, a meaningful beat that underpinned the rally after the release. Krispy Kreme (DNUT) Tops Q4 Earnings and Revenue Estimates
• Positive Sentiment: Operational improvement: Adjusted EBITDA and cash flow strengthened — management highlighted $55.6M adjusted EBITDA and $45M cash from operations, signaling the turnaround is producing margin and cash benefits. Krispy Kreme Reports Fourth Quarter and Full Year 2025 Financial Results
• Neutral Sentiment: Top‑line: revenue slightly beat Street (~$392.4M vs. estimates near $386–389M) but was down year‑over‑year — the beat came while management intentionally closed lower‑traffic distribution points as part of the turnaround. Krispy Kreme (NASDAQ:DNUT) Posts Better-Than-Expected Sales In Q4 CY2025
• Neutral Sentiment: Management commentary and guidance: the earnings call and slide deck emphasized strategic growth, unit rationalization and a constructive 2026 outlook — investors will watch execution and comps next year. Krispy Kreme, Inc. (DNUT) Q4 2025 Earnings Call Transcript
• Negative Sentiment: GAAP loss and weak profitability metrics remain — the company reported a GAAP net loss (Q4 ~$29.1M) and still shows a negative net margin and negative ROE, so profitability isn’t fully healed. Krispy Kreme Earnings Release and Transcript (MarketBeat)
• Negative Sentiment: Balance‑sheet and liquidity considerations — low current/quick ratios and meaningful leverage (debt/equity ~1.3) mean the company is still financially vulnerable if the turnaround stalls. WSJ: Krispy Kreme Revenue Falls as Chain Exits Underperforming Locations

Wall Street Analyst Weigh In

Several research firms have recently issued reports on DNUT. Weiss Ratings reiterated a “sell (d)” rating on shares of Krispy Kreme in a research note on Monday, December 29th. Wall Street Zen raised Krispy Kreme from a “sell” rating to a “hold” rating in a research report on Sunday, February 22nd. Zacks Research raised shares of Krispy Kreme from a “strong sell” rating to a “hold” rating in a research report on Monday, December 22nd. Finally, Morgan Stanley restated an “underweight” rating and issued a $3.00 price objective on shares of Krispy Kreme in a research note on Tuesday, January 20th. Two research analysts have rated the stock with a Buy rating, five have assigned a Hold rating and three have assigned a Sell rating to the stock. According to MarketBeat, the company currently has a consensus rating of “Reduce” and a consensus price target of $4.52.

Institutional Investors Weigh In On Krispy Kreme

Hedge funds have recently modified their holdings of the business. Russell Investments Group Ltd. boosted its holdings in Krispy Kreme by 1,229.5% in the 3rd quarter. Russell Investments Group Ltd. now owns 8,469 shares of the company’s stock valued at $33,000 after purchasing an additional 7,832 shares during the period. FNY Investment Advisers LLC acquired a new position in shares of Krispy Kreme during the fourth quarter valued at about $40,000. Capstone Financial Advisors Inc. bought a new stake in shares of Krispy Kreme in the second quarter valued at about $29,000. Sage Mountain Advisors LLC bought a new stake in shares of Krispy Kreme in the third quarter valued at about $39,000. Finally, Prudential Financial Inc. acquired a new stake in Krispy Kreme during the second quarter worth about $32,000. 81.72% of the stock is owned by institutional investors.

Krispy Kreme Stock Down 1.8%

The firm has a 50 day moving average of $3.57 and a 200-day moving average of $3.68. The company has a debt-to-equity ratio of 1.31, a current ratio of 0.36 and a quick ratio of 0.30. The stock has a market capitalization of $642.38 million, a P/E ratio of -1.24 and a beta of 1.31.

Krispy Kreme Company Profile

Krispy Kreme Doughnuts, Inc (NASDAQ: DNUT) is a global retailer and wholesaler renowned for its signature Original Glazed doughnut and a variety of other sweet treats. The company operates through a combination of company-owned stores, franchise outlets and strategic partnerships with supermarkets, convenience stores and other foodservice channels. In addition to its doughnut portfolio, Krispy Kreme offers freshly brewed coffee, assorted beverages and proprietary seasonal items designed to drive traffic and foster brand loyalty.

Founded in 1937 in Winston-Salem, North Carolina, by Vernon Rudolph, Krispy Kreme has grown from a single local shop to a multinational brand.