Why Did Krispy Kreme Stock Soar 25.18%? Meme Stock Traders Drive Surge

On July 23, 2025, Krispy Kreme's stock surged by 25.18% in pre-market trading, marking a significant rise that has captured the attention of investors and analysts alike.

The recent surge in Krispy Kreme's stock price can be attributed to renewed interest from meme stock traders, who have been driving up the stock's value. This phenomenon is not new for Krispy Kreme, as it has experienced similar spikes in the past due to high short interest and unexpected purchases by retail investors.

Despite the lack of new corporate announcements, the company's financial health remains a topic of concern. Krispy Kreme's market capitalization stands at $704.89 million, with a price-to-book ratio of 0.64, indicating that the stock is valued at a discount compared to its book value. However, the company's Altman Z-Score of 0.49 suggests a potential risk of bankruptcy within the next two years, raising questions about its long-term financial stability.

Additionally, Krispy Kreme has been issuing new debt, totaling $170.174 million over the past three years, which further impacts its financial stability. The company's negative EBITDA growth rate over the past year and at least one recorded loss in operating income in the past three years add to the concerns about its financial performance.

Investors considering Krispy Kreme should weigh the potential risks reflected in its financial indicators and market valuation. While the stock's recent surge offers an intriguing opportunity, it is essential to approach with caution given the company's current challenges and the volatility associated with meme stock trading.