Krispy Kreme's Doughnut Dreams Fizzle Out Amid Disappointing Earnings
Krispy Kreme investors haven't warmed to the company's transformation strategy. Shares of the doughnut maker fell as much as 27% on Tuesday after the company missed Wall Street's metrics across the board for both the fiscal fourth quarter and full-year results. Net revenue fell 10.4% in the quarter to $404 million as the sale of its majority stake in Insomnia Cookies created a $101 million revenue hit while a cybersecurity incident had an $11 million impact.
- As Krispy Kreme struggles to adapt to changing consumer habits, it raises questions about the long-term viability of traditional brick-and-mortar businesses in the fast-food industry.
- Will the company's efforts to expand into new markets and logistics be enough to offset the current slump, or will investors continue to lose faith in Krispy Kreme's ability to turn its business around?