Krispy Kreme Soars 6% Following Truist’s Upgrades
Krispy Kreme (NASDAQ:DNUT) shares surged more than 6% intra-day today after Truist Securities analyst upgraded the company to Buy from Hold, raising their price target to $15 from $13. Following recent meetings with the company's CEO and CFO, the analysts believe many investors either undervalue or misunderstand Krispy Kreme's potential. The market is not fully recognizing the value of Krispy Kreme's new partnership with McDonald's, which is expected to accelerate revenue growth for its legacy business in the coming quarters, even before the full rollout with McDonald's is complete.
Additionally, the analysts believe that any concerns related to GLP-1 are already reflected in the current stock price. They are confident these factors position Krispy Kreme for significant growth and increased investor value.
| Symbol | Price | %chg |
|---|---|---|
| 0LTM.L | 23328700000 | 0 |
| AMRT.JK | 2840 | 0.35 |
| 3382.T | 2444 | 0.9 |
| 282330.KS | 101800 | -0.98 |
Krispy Kreme Stock Jumps 24% as McDonald's Partnership Goes National
Krispy Kreme (NASDAQ:DNUT) shares jumped more than 24% intra-day today following an announcement of a partnership with McDonald's to distribute Krispy Kreme donuts in McDonald's U.S. restaurants by the end of 2026.
The rollout is scheduled to start in the second half of 2024. This move is part of Krispy Kreme's strategy to expand its presence globally through a hub-and-spoke model, targeting 75,000 points of access, including quick-service restaurants and grocery stores. By the end of 2023, Krispy Kreme had already increased its points of access by 2,300 compared to the previous year. This collaboration arrives as McDonald's has faced challenges with international demand partly due to boycotts linked to the Israel-Hamas conflict and economic difficulties in China. Prior to the full rollout, the companies conducted a pilot program in 160 McDonald's outlets in Kentucky, starting October 2022.
