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Why Krispy Kreme (DNUT) Stock Is Trading Up Today

DNUT Cover Image

What Happened?

Shares of doughnut chain Krispy Kreme (NASDAQ: DNUT) jumped 6% in the morning session after Federal Bureau of Investigation Director Kash Patel disclosed his personal stake in the company and said it was a “good investment” during congressional testimony. 

The revelation came while Patel was being questioned by lawmakers about his purchase of Krispy Kreme shares. He told the hearing that he simply saw “good investment” opportunities in the donut chain. The market reacted swiftly to the unusual endorsement from a high-profile government official, with shares jumping as much as 12% within minutes of his comments. The news also sparked a flurry of online discussion, as retail message volume on stock sites soared, showing a massive spike in individual investor interest.

Is now the time to buy Krispy Kreme? Access our full analysis report here, it’s free.

What Is The Market Telling Us

Krispy Kreme’s shares are extremely volatile and have had 33 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business.

The previous big move we wrote about was 1 day ago when the stock gained 5.1% on the news that the stock's positive momentum continued as the company unveiled new limited-edition doughnut collections to entice customers. 

The American doughnut chain introduced its "Fall Fair Collection," a limited-time offering featuring four new flavors: Cotton Candy, Kreme Puff, Blue Ribbon Apple Pie, and Caramel Churro. This launch appeared aimed at capturing seasonal consumer interest in the U.S. market. Adding to the theme of creative product marketing, Krispy Kreme's division in Indonesia also launched a special set of doughnuts inspired by the Harry Potter series. These new product rollouts seemed to sweeten investor sentiment, sparking optimism that the novel offerings could drive customer traffic and boost sales.

Krispy Kreme is down 64.7% since the beginning of the year, and at $3.44 per share, it is trading 72.3% below its 52-week high of $12.42 from November 2024. Investors who bought $1,000 worth of Krispy Kreme’s shares at the IPO in June 2021 would now be looking at an investment worth $163.57.

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