Doughnut chain Krispy Kreme (NASDAQ:DNUT) will be announcing earnings results tomorrow before market hours. Here’s what to expect.
Krispy Kreme missed analysts’ revenue expectations by 1.7% last quarter, reporting revenues of $379.9 million, down 6.8% year on year. It was a disappointing quarter for the company, with a significant miss of analysts’ EBITDA and EPS estimates.
Is Krispy Kreme a buy or sell going into earnings? Read our full analysis here, it’s free.
This quarter, analysts are expecting Krispy Kreme’s revenue to decline 8.8% year on year to $411.1 million, a reversal from the 11.4% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.10 per share.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Krispy Kreme has missed Wall Street’s revenue estimates five times over the last two years.
Looking at Krispy Kreme’s peers in the traditional fast food segment, some have already reported their Q4 results, giving us a hint as to what we can expect. Dutch Bros delivered year-on-year revenue growth of 34.9%, beating analysts’ expectations by 7.6%, and Wendy's reported revenues up 6.2%, topping estimates by 2.1%. Dutch Bros traded up 29% following the results while Wendy’s stock price was unchanged.
Read our full analysis of Dutch Bros’s results here and Wendy’s results here.
Valuation multiples for many growth stocks have not yet reverted to their early 2021 highs, but the market has been optimistic as of late due to a soft landing. This is an economic situation where rate hikes successfully quelled inflation but did not send the economy into a recession. Furthermore, recent rate cuts and Donald Trump's triumph in the 2024 Presidential election have been tailwinds for the market, and while some of the traditional fast food stocks have shown solid performance, the group has generally underperformed, with share prices down 2.7% on average over the last month. Krispy Kreme’s stock price was unchanged during the same time and is heading into earnings with an average analyst price target of $14.77 (compared to the current share price of $9.36).
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