Krispy Kreme, Inc.DNUT
NASDAQ • Consumer Defensive
$3.24
P/E
—
PEG
—
FCF Yield
—
Rev Growth YoY
-2.2% YoY
Gross Margin
15.9%
Health Score
1/10
D/E Ratio
2.17
Confidence
LOW
Business Snapshot
Krispy Kreme is a global doughnut retailer that generates revenue through company-owned stores, franchise operations, and fresh-doughnut delivery partnerships with grocery and convenience chains. It operates in the highly competitive grocery store segment, where brand loyalty and fresh-product logistics are key differentiators. With TTM revenue of $1.51B, the company is a small-to-mid-cap player that has struggled to maintain profitability. A defining characteristic is its capital-intensive model, requiring significant investment in store network and daily distribution, which has left it highly leveraged and cash-flow negative.
Financial Health
Gross margin collapsed to 15.9% from 76.3% in the prior year, while net margin stands at -33.9%, reflecting deep operating losses. Debt/equity of 2.17x and a current ratio of 0.38x indicate a distressed balance sheet with very limited short-term liquidity to cover liabilities...
Risk Assessment
- EARNINGS QUALITY — 2 of 4 recent quarters beat estimates; mixed execution with a huge loss in Q4 raises questions about earnings reliability.
- REVENUE DECELERATION — Revenue declined 2.2% YoY and 6.5% QoQ, indicating accelerating top-line weakness.
- DEBT / LIQUIDITY — Debt/equity of 2.17x and a current ratio of 0.38x reflect a highly leveraged balance sheet with severely limited short-term liquidity.
- 52-WEEK POSITION — The current price of $3.24 is 43% below the 52-week high of $5.73 and below the midpoint of the high/low range, suggesting persistent downward pressure.
- FCF / CASH BURN — Free cash flow was negative $64.0M, confirming the company is burning cash rather than generating it, raising the risk of funding needs.
- TECHNICALS — RSI, MACD, and moving average data unavailable for this period; momentum cannot be independently confirmed....