Krispy Kreme's Stock Plunges 24.71% Amid Sales Slump

Krispy Kreme's stock (DNUT) has plummeted 24.71% over the past two days, marking a record low with an intraday decline of 30.25%.

The strategy of buying Krispy Kreme (DNUT) shares after they reached a recent low and holding for 1 week resulted in significant losses. The total return for DNUT stock over the past 12 months was -66.99%, with a decrease of 58.21% this year. This poor performance indicates that holding DNUT shares for any short period, such as 1 week, did not provide a positive return during this period.

Krispy Kreme's recent stock decline can be attributed to several factors. The company's sales figures have been disappointing, with a year-to-date decline of around 65%. This downturn is partly due to a 20% drop in stock value, which has been exacerbated by the pause in its partnership with McDonald's, resulting in a 25% plunge in stock price.

In the first quarter of 2025, Krispy Kreme reported a 15.3% year-over-year decrease in sales, totaling $375.2 million. This figure fell short of Wall Street's revenue expectations, further dampening investor confidence. The company's high valuation, debt risks, and the underperformance of its McDonald's partnership have also contributed to the stock's 60% drop. Additionally, Krispy Kreme reported a Q1 loss of $33.3 million, which has negatively impacted investor sentiment.