Shares of Krispy Kreme (DNUT +3.71%) were red-hot on Thursday morning, starting the day with a 19.4% price gain. Like the donut shop's signature deep-fried pastries, the stock cooled down quickly. By 2 p.m. ET, share prices were up by 5.7% from Wednesday's market close. The short-lived surge was inspired by Krispy Kreme's third-quarter earnings report.
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Krispy Kreme's mixed Q3 numbers
Krispy Kreme's Q3 sales fell 1.2% year over year to $375.3 million. Adjusted earnings landed at $0.01 per diluted share, up from a $0.01 loss per share in the year-ago period. This was a mixed bag compared to Wall Street's consensus estimates, which had pointed to a net loss of $0.06 per share on revenues near $378.7 million.
NASDAQ: DNUT
Key Data Points
The turnaround plan is heating up
It's not easy to find today's price swing on Krispy Kreme's one-year price chart. The stock is currently trading 59% above early May's yearly bottom but also 68% below the 52-week high recorded in November 2024.
The company is running in full-on turnaround mode, with negative sales trends and unprofitable operations since the summer of 2024. The recovery plan involves company-owned store expansion in the domestic market and a lower-cost franchising push internationally. CEO Josh Charlesworth expects positive free cash flow from now on, including a $15.5 million cash profit in the just-reported quarter.
Krispy Kreme's stock has been an easy target for meme stock speculation in recent months, due to this inherent volatility and unstable financial trends. In 2025, this stock has often soared or crashed on social media chatter alone. I'm interested in the turnaround story, but unlikely to buy any Krispy Kreme stock until the meme stock fracas fades away. The best way to get there? Keep posting robust financial results.
