Krispy Kreme Company Overview

Zacks Rank #5 (Strong Sell) stock Krispy Kreme (DNUT) is a Charlotte-based. Globally recognized sweet treat brand, best known for its signature “Original Glazed” doughnut. Krispy Kreme’s company model consists of a fresh doughnut shop network (known for the “Hot Now” sign), retail strategic partnerships, and e-commerce and delivery growth. The company operates mainly in the US and Canada; however, its international footprint extends to the UK, Australia, and Mexico. In addition, the company has a diversified sweet treat portfolio that includes entities like Insomnia Cookies. That said, Krispy Kreme’s success mainly depends on its fresh doughnuts segment.

America’s Newfound Health Kick

The COVID-19 Pandemic was a tough time for many Americans, which led to solitude, mental health issues, job loss, and, for some, the loss of loved ones. However, the COVID-19 silver lining is that, with extra time and a work-from-home-environment, many Americans discovered the importance of health. In addition, data from the COVID-19 virus conclusively showed that death from the virus (and many other viruses, for that matter) can largely be sidestepped if the patient is not overweight.

Though New Year’s health resolutions are nothing new, a 2025 Ipsos poll found that “Younger Americans are particularly likely to resolve to healthier living – and even if you’ve been keeping up with Gen Z wellness trends, the extent of that enthusiasm is striking.

Krispy Kreme Earnings Plunge

While not all young people will stick with their resolutions, a long overdue seismic shift appears to be taking place in America. Health influencers such as Gary Brecka and Andrew Huberman have gained millions of followers over the past few years, and young people are listening. That’s terrible news for Krispy Kreme, which has endured an EPS plunge from $0.24 in 2022 to just $.06 today.

Image Source: Zacks Investment Research

Government Oversight Risk

Former Independent Presidential Candidate and current Health and Human Services (HHS) Robert F Kennedy Jr. is intent on “fixing the food” to “Make America Healthy Again.” RFK aims to end subsidies for junk food and sugary drinks, eliminate ultra-processed foods, and develop dietary guidelines to educate Americans. While RFK has just started his new role, he is already making waves. For instance, an RFK social media post that received millions of views read, “Congratulations SteaknShake on being the first national fast-food chain to begin the transition away from seed oils. Thanks for leadership in the crusade to Make America Healthy Again.” While RFK may not be able to shut down restaurants like Krispy Kreme, his influence on the national stage may impact on American dietary habits.

Bottom Line

Krispy Kreme, a globally recognized sweet treat brand heavily reliant on its fresh doughnut segment, faces significant challenges as American dietary habits shift towards healthier lifestyles.

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

Krispy Kreme, Inc. (DNUT) : Free Stock Analysis Report

This article originally published on Zacks Investment Research (zacks.com).

Zacks Investment Research