Why Krispy Kreme Stock Sizzled This Morning, Then Cooled Down
Key Points
Krispy Kreme posted a surprise adjusted profit of $0.01 per share, beating Wall Street's expectation of a $0.06 loss.
CEO Josh Charlesworth expects positive free cash flows going forward, including $15.5 million generated in the third quarter.
Meme stock speculation has made Krispy Kreme's stock too hot to handle in 2025.
- 10 stocks we like better than Krispy Kreme ›
Shares of Krispy Kreme (NASDAQ: DNUT) were red-hot on Thursday morning, starting the day with a 19.4% price gain. Like the donut shop's signature deep-fried pastries, the stock cooled down quickly. By 2 p.m. ET, share prices were up by 5.7% from Wednesday's market close. The short-lived surge was inspired by Krispy Kreme's third-quarter earnings report.
Image source: Getty Images.
Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now. Continue »
Krispy Kreme's mixed Q3 numbers
Krispy Kreme's Q3 sales fell 1.2% year over year to $375.3 million. Adjusted earnings landed at $0.01 per diluted share, up from a $0.01 loss per share in the year-ago period. This was a mixed bag compared to Wall Street's consensus estimates, which had pointed to a net loss of $0.06 per share on revenues near $378.7 million.
The turnaround plan is heating up
It's not easy to find today's price swing on Krispy Kreme's one-year price chart. The stock is currently trading 59% above early May's yearly bottom but also 68% below the 52-week high recorded in November 2024.
The company is running in full-on turnaround mode, with negative sales trends and unprofitable operations since the summer of 2024. The recovery plan involves company-owned store expansion in the domestic market and a lower-cost franchising push internationally. CEO Josh Charlesworth expects positive free cash flow from now on, including a $15.5 million cash profit in the just-reported quarter.
Krispy Kreme's stock has been an easy target for meme stock speculation in recent months, due to this inherent volatility and unstable financial trends. In 2025, this stock has often soared or crashed on social media chatter alone. I'm interested in the turnaround story, but unlikely to buy any Krispy Kreme stock until the meme stock fracas fades away. The best way to get there? Keep posting robust financial results.
Should you invest $1,000 in Krispy Kreme right now?
Before you buy stock in Krispy Kreme, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Krispy Kreme wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $592,390!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,196,494!*
Now, it’s worth noting Stock Advisor’s total average return is 1,052% — a market-crushing outperformance compared to 193% for the S&P 500. Don’t miss out on the latest top 10 list, available when you join Stock Advisor.
See the 10 stocks »
*Stock Advisor returns as of November 3, 2025
Anders Bylund has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.
Recommended Articles
