Krispy Kreme Considers Selling Insomnia Cookies Business For The Love Of Fresh Doughnuts
Portfolio Pulse from Lekha Gupta
Krispy Kreme Inc (NASDAQ:DNUT) is considering selling its Insomnia Cookies business as part of a strategic move to focus on its core doughnut business. Insomnia Cookies has tripled its revenue since 2017 and is expected to generate about $230 million in FY23. Krispy Kreme's Q2 FY23 sales grew by 9% YoY to $408.88 million, slightly below the analyst consensus.
October 03, 2023 | 2:55 pm
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Krispy Kreme's potential sale of Insomnia Cookies could streamline its operations and focus on its core business. However, Q2 FY23 sales missed analyst expectations, which could negatively impact investor sentiment.
The potential sale of Insomnia Cookies could be seen as a positive move by investors as it allows Krispy Kreme to focus on its core business. However, the missed sales target for Q2 FY23 could negatively impact the stock in the short term as it indicates a potential slowdown in growth.
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IMPORTANCE 75
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