Why Did Krispy Kreme Plunge 19.63%? Earnings Miss, Revenue Drop

Generated by AI AgentAinvest Movers Radar
Thursday, May 8, 2025 7:30 am ET1min read

On May 8, 2025, Krispy Kreme's stock experienced a significant drop of 19.63% in pre-market trading, reflecting investor concerns over the company's recent financial performance.

Krispy Kreme reported its first-quarter 2025 financial results, revealing a net revenue of $375.2 million, which marked a 1.0% decrease in organic revenue. This decline was primarily attributed to a 15.3% year-over-year decrease in net revenue, which was significantly lower than the previous year's performance.

The company also reported a loss of $33.3 million for the quarter, further dampening investor sentiment. Additionally, Krispy Kreme's revenue for the quarter fell short of consensus estimates, coming in at $375.2 million compared to the expected $385.11 million. The company's guidance for the second quarter of 2025 also indicated a revenue range of $370-385 million, which did not instill confidence in investors.

In response to the revenue decline,

secured a $125 million loan to bolster its financial position. This move underscores the company's efforts to navigate through the current challenges and stabilize its financial health.

Comments



Add a public comment...
No comments

No comments yet