Wall Street’s Interest in Krispy Kreme
Wall Street is showing a strong appetite for Krispy Kreme, leading to a significant increase in the doughnut maker’s stock value. Shares of Krispy Kreme rose to $11.35 a share following an upgraded rating and price hike fueled by its partnership with McDonald’s, announced earlier this year.
The McDonald’s Partnership
In March, Krispy Kreme revealed plans to offer three doughnut flavors at most of McDonald’s 13,500 U.S. locations by the end of 2026. This announcement caused Krispy Kreme’s stock to surge by 40%. Truist Securities has now upgraded its recommendation for Krispy Kreme from buy to hold, setting a price target of $15. The firm emphasized the potential of the partnership with McDonald’s, calling it an “under-appreciated story.”
Despite concerns about the impact of weight loss drugs like Ozempic on Krispy Kreme’s sales, Truist remains optimistic. Analysts believe that the partnership with McDonald’s will drive revenue growth for Krispy Kreme, especially with the popularity of specialty doughnuts like the Solar Eclipse and Valentine’s Day pastries.
Expansion of Doughnut Dots Menu
To further capitalize on its success, Krispy Kreme announced the permanent addition of four new flavors to its Doughnut Dots menu. The new flavors – powdered, sprinkled, cinnamon, and cookie crumb – will complement the existing Original Glazed option. Customers can purchase these new flavors online or in-store in 10-count or 24-count cups.
Image/Photo credit: source url