2024-05-30 10:28:33 ET
Summary
- Krispy Kreme's financial performance in Q1 2024 exceeded expectations, with revenue growth driven by strong demand and increased digital presence.
- The company's global growth is a positive sign, but profitability metrics and margins need improvement.
- The partnership with McDonald's and ambitious long-term goals make Krispy Kreme an interesting candidate for growth investors, but the stock is currently overvalued.
- We maintain our "hold" rating.
Krispy Kreme, Inc. ( DNUT ), together with its subsidiaries, produces doughnuts in the United States and internationally. We published our first writing on the company back in March 2024 , when their partnership with McDonald’s ( MCD ) was announced. At that time, we rated the firm’s shares as “hold”, due to a relatively strong financial performance and an apparent overvaluation, caused by the significant jump in the share price after the news came out....
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Krispy Kreme: Don't Overpay For The Potential Growth