It's hard to argue that Krispy Kreme (DNUT -3.52%) doesn't sell tasty treats that consumers love. It's a bit more of a stretch, however, to convince investors that the donut slinger's stock is an attractive investment. On the back of a bearish new analysis, Krispy Kreme's share price was tumbling by 14% week-to-date as of Thursday night, according to data compiled by S&P Global Market Intelligence.

Not so sweet

Monday morning, before market open, JPMorgan Chase's Rahul Krotthapalli set the tone for the subsequent trading days with said analysis. In it, he made a fairly deep cut to his price target, reducing it to $8 per share from his preceding $13. Although he maintained his overweight (i.e., buy) recommendation, that change was relatively dramatic.

According to reports, Krotthapalli's new take is based on his growing doubts that Krispy Kreme can effectively execute its "delivered fresh daily" strategy (the company aims to concentrate on large wholesale accounts for big restaurant chains and retail outlets).

The analyst's maintenance of the buy recommendation, though, indicates he still has hope the company will effect this.

Donut declines

These days, it's easy to be down on Krispy Kreme, as the disappointing fourth-quarter 2024 results published at the end of February continue to leave a bad taste in the mouths of investors. Not only did the company report sinking sales and non-GAAP (adjusted) profitability, but it missed on both those metrics. Worse, it guided for continued declines across the entirety of 2025.

I don't see any great catalyst for Krispy Kreme, particularly in this age of the increasing health consciousness among the American consumer. Like Krotthapalli, I think the company's go-to strategy is clever, but it won't be worth much if it isn't implemented to any great degree.