Doughnut chain Krispy Kreme (NASDAQ:DNUT) will be reporting earnings tomorrow before market open. Here’s what to expect.
Krispy Kreme beat analysts’ revenue expectations by 1.1% last quarter, reporting revenues of $438.8 million, up 7.3% year on year. It was a slower quarter for the company, with full-year revenue guidance missing analysts’ expectations.
Is Krispy Kreme a buy or sell going into earnings? Read our full analysis here, it’s free.
This quarter, analysts are expecting Krispy Kreme’s revenue to decline 6.6% year on year to $380.3 million, a reversal from the 7.9% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.01 per share.
The majority of analysts covering the company have reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Krispy Kreme has missed Wall Street’s revenue estimates twice over the last two years.
Looking at Krispy Kreme’s peers in the traditional fast food segment, some have already reported their Q3 results, giving us a hint as to what we can expect. Yum China delivered year-on-year revenue growth of 5.4%, beating analysts’ expectations by 1.5%, and El Pollo Loco reported flat revenue, in line with consensus estimates. Yum China traded up 7.3% following the results while El Pollo Loco was down 2.1%.
Read our full analysis of Yum China’s results here and El Pollo Loco’s results here.
There has been positive sentiment among investors in the traditional fast food segment, with share prices up 6.8% on average over the last month. Krispy Kreme is up 14% during the same time and is heading into earnings with an average analyst price target of $15.19 (compared to the current share price of $12.20).
Here at StockStory, we certainly understand the potential of thematic investing. Diverse winners from Microsoft (MSFT) to Alphabet (GOOG), Coca-Cola (KO) to Monster Beverage (MNST) could all have been identified as promising growth stories with a megatrend driving the growth. So, in that spirit, we’ve identified a relatively under-the-radar profitable growth stock benefitting from the rise of AI, available to you FREE via this link.
