Read This Before Buying Krispy Kreme Stock

2025-12-13 13:33:00 ET

Doughnuts. We all love them. Despite this, they're not always the dream investment. Some operations do well, while others are struggling right now. Krispy Kreme (NASDAQ: DNUT) makes its money from the sale of its famous doughnuts, as well as coffee and other drinks. The chain has been around for a long time, but has struggled somewhat to find its footing in recent years in terms of profitability.

This is not a stock that has been outperforming. The shares are down more than 77% over the last five years, versus an S&P 500 return of over 85% in gains. Things have been a bit different over the last six months, as the big pullbacks in Krispy Kreme's stock have seemingly led to investors getting reinvigorated in owning shares, despite the fact that the company has some weakening financials. In all, shares are up 46.8% over the last six months.

Through the last five years, the company has been largely unprofitable. The doughnut/coffee chain had losses in 2020, 2021, 2022, and 2023. Things changed in 2024, but it was a small $3.1 million in net income, off of $1.67 billion in net revenue.

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