Krispy Kreme (NASDAQ:DNUT) Shares Gap Up on Strong Earnings

Krispy Kreme, Inc. (NASDAQ:DNUT)’s share price gapped up prior to trading on Thursday after the company announced better than expected quarterly earnings. 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 traded.

The company reported $0.09 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.03 by $0.06. Krispy Kreme had a negative return on equity of 5.13% and a negative net margin of 33.27%.The firm had revenue of $392.37 million for the quarter, compared to the consensus estimate of $386.72 million. During the same quarter in the prior year, the business earned $0.01 EPS. The business’s revenue for the quarter was down 2.9% compared to the same quarter last year.

Analyst Upgrades and Downgrades

A number of analysts have recently issued reports on the stock. Zacks Research upgraded shares of Krispy Kreme from a “strong sell” rating to a “hold” rating in a report on Monday, December 22nd. Morgan Stanley reaffirmed an “underweight” rating and issued a $3.00 target price on shares of Krispy Kreme in a research report on Tuesday, January 20th. Weiss Ratings reissued a “sell (d)” rating on shares of Krispy Kreme in a research report on Monday, December 29th. Finally, Wall Street Zen raised Krispy Kreme from a “sell” rating to a “hold” rating in a research report on Sunday. Two analysts have rated the stock with a Buy rating, five have issued a Hold rating and three have given a Sell rating to the company’s stock. Based on data from MarketBeat.com, the stock currently has an average rating of “Reduce” and a consensus price target of $4.52.

Hedge Funds Weigh In On Krispy Kreme

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

Krispy Kreme Price Performance

The company has a quick ratio of 0.30, a current ratio of 0.36 and a debt-to-equity ratio of 1.31. The business’s 50-day moving average is $3.61 and its two-hundred day moving average is $3.67. The company has a market capitalization of $667.21 million, a P/E ratio of -1.30 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.