Why Doughnut Maker Krispy Kreme Shares Are Falling Today
Portfolio Pulse from Nabaparna Bhattacharya
Krispy Kreme, Inc. (NASDAQ:DNUT) shares fell in premarket trading after reporting Q4 FY23 sales growth of 11.4% to $450.9 million, surpassing estimates but missing EPS expectations with $0.09 versus the $0.13 consensus. The company cited increased depreciation and amortization from global expansion as a factor. Krispy Kreme is exploring strategic alternatives for Insomnia Cookies. Despite revenue growth across segments and a 14.7% increase in adjusted EBITDA, the company's FY24 EPS guidance of $0.27-$0.31 falls short of the $0.38 estimate, leading to a 3.83% drop in share price to $13.30.
February 13, 2024 | 1:59 pm
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Krispy Kreme's Q4 report showed strong sales growth but missed EPS expectations, leading to a premarket share price drop. The company is also exploring strategic alternatives for Insomnia Cookies.
The share price drop is directly related to the earnings miss and the uncertainty surrounding the future of Insomnia Cookies. Despite strong sales growth, the lower-than-expected EPS and FY24 guidance below analyst estimates have likely contributed to negative investor sentiment in the short term.
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