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

Krispy Kreme, Inc. (NASDAQ:DNUT) gapped up before the market opened on Thursday following a stronger than expected earnings report. 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 analysts’ consensus estimates of $0.03 by $0.06. The business had revenue of $392.37 million during the quarter, compared to the consensus estimate of $386.72 million. Krispy Kreme had a negative net margin of 33.27% and a negative return on equity of 5.13%. The firm’s quarterly revenue was down 2.9% compared to the same quarter last year. During the same quarter last year, the company posted $0.01 earnings per share.

Analyst Upgrades and Downgrades

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

Hedge Funds Weigh In On Krispy Kreme

Several institutional investors and hedge funds have recently modified their holdings of DNUT. Invesco Ltd. raised its position in Krispy Kreme by 27.6% in the 4th quarter. Invesco Ltd. now owns 462,038 shares of the company’s stock worth $1,857,000 after buying an additional 99,968 shares during the last quarter. XTX Topco Ltd increased its holdings in Krispy Kreme by 144.3% in the 4th quarter. XTX Topco Ltd now owns 113,778 shares of the company’s stock worth $457,000 after acquiring an additional 67,205 shares in the last quarter. Occudo Quantitative Strategies LP bought a new position in Krispy Kreme in the 4th quarter worth $103,000. AQR Capital Management LLC raised its stake in Krispy Kreme by 58.5% during the 4th quarter. AQR Capital Management LLC now owns 69,118 shares of the company’s stock valued at $278,000 after purchasing an additional 25,513 shares during the period. Finally, Cetera Investment Advisers purchased a new position in shares of Krispy Kreme in the fourth quarter worth $51,000. 81.72% of the stock is currently owned by institutional investors.

Krispy Kreme Price Performance

The company has a debt-to-equity ratio of 1.31, a quick ratio of 0.30 and a current ratio of 0.36. The firm’s fifty day simple moving average is $3.61 and its 200 day simple moving average is $3.67. The firm has a market cap 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.