2024-03-28 03:56:23 ET
Summary
- Krispy Kreme has reported strong quarterly earnings results, with total revenue and organic revenue increasing.
- The company's management is positive about the results and attributes the growth to strong consumer demand and increased access to their products.
- Krispy Kreme's partnership with McDonald's to roll out their doughnuts nationwide is expected to enhance distribution efficiency and profitability.
- On the other hand, the firm seems to be overpriced, which we believe is neither justified by the fundamentals, nor by the partnership with MCD.
- For these reasons, we rate the firm's stock as "hold".
Krispy Kreme ( DNUT ), a global icon in the world of doughnuts, has captivated taste buds since its inception in 1937. Renowned for its melt-in-your-mouth Original Glazed doughnuts, the brand has expanded its delectable offerings to include a wide array of flavors and treats. With its irresistible combination of fluffy dough, heavenly glazes, and mouthwatering fillings, Krispy Kreme has become a household name synonymous with indulgence and joy. From its humble beginnings in Winston-Salem, North Carolina, to its widespread presence across continents, Krispy Kreme continues to delight doughnut enthusiasts of all ages with its freshly made, hot-off-the-line treats. And recently it has been just announced that their products will be available in McDonald’s locations nationwide ....
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Krispy Kreme: Does The Partnership With McDonald's Justify The Price?