Krispy Kreme Inc. Common Stock (DNUT)

FairStock Score: 29/100 — RISKY

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

I look for businesses that earn good returns on capital, carry modest debt, and can be bought at a sensible price. Krispy Kreme fails the first tests today. In fiscal 2025, the year ended 2025-12-28, the company reported net income of -$515.8 million and diluted EPS of -$3.04, after fiscal 2024, the year ended 2024-12-29, net income of $3.1 million. In the latest filed quarter, fiscal Q2 2026, the quarter ended 2026-06-28, revenue was $331.0 million and net income was -$20.3 million, or diluted EPS -$0.12. That is a narrower loss than fiscal Q2 2025, the quarter ended 2025-06-29, when net income was -$435.3 million and diluted EPS was -$2.55, but it is still a loss. Revenue also fell from $379.8 million in fiscal Q2 2025, the quarter ended 2025-06-29, to $331.0 million in fiscal Q2 2026, the quarter ended 2026-06-28. The FairStock calculations at the 2026-10-13 close show a negative P/E of -5.58, P/B of 0.86, ROE of -13.72%, ROCE of -0.58%, and debt-to-equity of 2.04. Those are not the marks of a fortress balance sheet. The Piotroski F-Score of 2/9 and Altman Z-Score of -0.35 reinforce the financial fragility. Yet the business is not devoid of value: trailing free cash flow was $37.3 million, a 7.0% FCF yield, and the dividend yield is 3.47%. The brand is global, but I see little durable moat in doughnuts; the stock trades below book near the low end of its 52-week range. FairStock calls it a TURNAROUND, because it lost money in the latest year after earlier profits. I would want evidence that losses are shrinking, debt is manageable, and revenue is stabilizing before calling this a durable bargain. At today's price, the market is pricing doubt, and the operating record justifies much of that doubt.

In plain English: Krispy Kreme makes and sells doughnuts in shops and through grocery and convenience stores around the world. The company has been losing money lately, carries a lot of debt, and its sales have slipped, so the business looks weak financially. At the recent price of $3.07, the stock looks cheap compared with the accounting value of its assets, but the losses mean it is not clearly a bargain.

The full AI analysis, bull and bear case and key monitorables are in FairStock Pro.

Data as of 2026-10-13 close · note generated 2026-10-15 · model deepseek-flash

Sources (SEC EDGAR): fiscal Q2 2026 10-Q (period ended 2026-06-28) · fiscal Q1 2026 10-Q (period ended 2026-03-29) · fiscal Q3 2025 10-Q (period ended 2025-09-28) · fiscal Q2 2025 10-Q (period ended 2025-06-29) · FY2025 10-K (period ended 2025-12-28) · FY2024 10-K (period ended 2024-12-29) · FY2023 10-K (period ended 2023-12-31)

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer