Krispy Kreme, Inc.

Key Points
Krispy Kreme stock surged as much as 37.7% on Wednesday morning due to coordinated Reddit activity, not business news.
The donut chain's high short interest (over 30% of shares) and low trading volume make it a suitable target for coordinated short-squeeze attempts.
A similar Reddit-driven surge in July saw Krispy Kreme jump 32.5% in two days, only to lose all gains within two weeks.
Shares of Krispy Kreme (NASDAQ: DNUT) skyrocketed on Wednesday morning, reaching prices not seen since early May. The donut shop operator's stock was up 23.2% at 10:50 a.m. ET, down from an earlier peak of 37.7%. Krispy Kreme did not report business results (the Q3 report will drop in November).
The Frankendough Dozen promotion it announced this morning shouldn't have this kind of market-moving power. Instead, Krispy Kreme investors are attempting to unleash a short squeeze with the usual meme stock tricks.
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The meme stock crowd found a new sugar rush
According to meme stock trackers like YoloStocks, Krispy Kreme posts are kicking up a storm in Reddit channels such as r/pennystocks, r/ShortSqueeze, and r/WallStreetBets -- the typical social media venues for no-news meme stock pushes. Notably, Krispy Kreme is not one of the 10 most-discussed stock tickers in more serious Reddit channels like r/Investing or r/Stocks today.
Typical posts celebrate big wins Krispy Kreme investors made from earlier meme stock moves, or remind people that you only live once -- so take a chance on this no-news situation. Krispy Kreme's stock has more than 30% of its shares on loan to short-sellers and a low average trading volume. With that setup, a quick burst of retail investor purchases can result in quick price spikes, which then prompt short-sellers to cover their bearish positions in a panic.
The inevitable crash after the sweet, sweet high
Short-squeeze pushes really do have market-moving power from time to time, including the Reddit-based campaign for Krispy Kreme in late July. The stock jumped 32.5% from July 21 to 23, but the artificial boost didn't last. The gains were gone less than two weeks later.
I don't expect the current surge to stick around for very long, either. Krispy Kreme has some legit business ideas in play, like an international expansion and the aforementioned Halloween-themed promotion. But the stock needs to cool off from this artificially sweetened meme stock surge before I'd even think about buying it.
Should you invest $1,000 in Krispy Kreme right now?
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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.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Why Krispy Kreme Stock Is Skyrocketing (Again) Today

The NASDAQ 100 Pre-Market Indicator is down -16.67 to 25,110.46. The total Pre-Market volume is currently 585,875,364 shares traded.
The following are the most active stocks for the pre-market session:
Beyond Meat, Inc. (BYND) is +2.73 at $6.35, with 408,768,541 shares traded. BYND's current last sale is 317.5% of the target price of $2.
Krispy Kreme, Inc. (DNUT) is +0.85 at $4.56, with 34,234,143 shares traded. DNUT's current last sale is 136.12% of the target price of $3.35.
Rani Therapeutics Holdings, Inc. (RANI) is +0.43 at $3.28, with 9,060,842 shares traded. As reported by Zacks, the current mean recommendation for RANI is in the "strong buy range".
Bitfarms Ltd. (BITF) is -0.3103 at $4.18, with 7,274,977 shares traded. As reported by Zacks, the current mean recommendation for BITF is in the "buy range".
Direxion Daily TSLA Bull 2X Shares (TSLL) is +0.02 at $20.48, with 6,898,282 shares traded. This represents a 225.6% increase from its 52 Week Low.
SCHMID Group N.V. (SHMD) is +0.31 at $4.34, with 6,466,606 shares traded.
D-Wave Quantum Inc. (QBTS) is -1.7 at $30.49, with 1,364,932 shares traded., following a 52-week high recorded in prior regular session.
BigBear.ai, Inc. (BBAI) is -0.1302 at $6.95, with 1,157,685 shares traded. BBAI's current last sale is 115.83% of the target price of $6.
First Majestic Silver Corp. (AG) is -0.58 at $12.17, with 1,140,100 shares traded. AG's current last sale is 77.03% of the target price of $15.799.
NuScale Power Corporation (SMR) is +0.35 at $38.72, with 1,125,712 shares traded. SMR's current last sale is 95.6% of the target price of $40.5.
SES AI Corporation (SES) is -0.1099 at $2.73, with 1,120,669 shares traded. SES's current last sale is 273.01% of the target price of $1.
Vertiv Holdings, LLC (VRT) is +13.45 at $188.25, with 1,110,001 shares traded. As reported by Zacks, the current mean recommendation for VRT is in the "buy range".
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Pre-Market Most Active for Oct 22, 2025 : BYND, DNUT, RANI, BITF, TSLL, SHMD, QBTS, BBAI, AG, SMR, SES, VRT

(RTTNews) - Krispy Kreme, Inc. (DNUT) on Wednesday announced a series of limited-time Halloween-themed treats available through the holiday season.
Today and tomorrow, fans can grab a Frankendough Dozen for $13, which includes 10 Frankendoughnuts - green Original Glazed doughnuts with decorative Halloween green icing lines - plus one Frank Doughnut, dipped in green icing with chocolate cookie crunch and a stitch, and one Francine Doughnut, decorated with a white hair streak. The offer is available in-store, at the drive-thru, or online for pickup and delivery, with a limit of two per guest.
From October 24-26, guests can get a dozen Original Glazed doughnuts for $2 with the purchase of any dozen at regular price. The offer can be redeemed in-store by saying "Scary Good" or online and via the app using code SCARYGOOD, with a limit of one per guest.
On October 25 and Halloween, anyone visiting a participating U.S. shop in costume can receive a free Original Glazed or Classic Ring Doughnut, no purchase necessary.
Krispy Kreme's Trick or Treat! Collection continues through Halloween, featuring four new doughnuts - Candy Bag, Cookies and Skreme House, Jack-O-Lantern, and Spooky Sprinkle - all packaged in a special Halloween-themed dozen box.
Krispy Kreme stock was more than 30% up in pre-market trading from Tuesday's close of $3.71.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Krispy Kreme Rolls Out Limited-Time Halloween Offers And New Doughnuts

For Immediate Release
Chicago, IL – September 2, 2025 – Zacks Equity Research shares Arlo Technologies ARLO as the Bull of the Day and Krispy Kreme DNUT as the Bear of the Day. In addition, Zacks Equity Research provides analysis on The Greenbrier Companies, Inc. GBX, Ryder Corp. R and Air Lease Corp. AL.
Here is a synopsis of all five stocks.
Sometimes Wall Street gets so wrapped up in chasing the biggest names in tech that it forgets about the companies quietly carving out their own corner of growth. Everybody spends so much time focused on the likes of NVDA and other AI names they forget about the slow and steady growth names out there. One of those names is today’s Bull of the Day, Arlo Technologies.
Arlo Technologies is the smart home security company that has gone from a niche player to a serious contender in connected devices. With a Zacks Rank #1 (Strong Buy) and bullish earnings estimate revisions flowing in, Arlo is showing investors why it deserves a closer look.
Arlo’s bread and butter is its lineup of connected security cameras, video doorbells, floodlights, and subscription services that turn hardware sales into recurring, high-margin revenue streams. The company’s latest earnings report highlighted revenue growth north of expectations, driven by strong adoption of its subscription platform. Analysts have taken notice. Over the last 30 days, upward revisions have pushed the Zacks Consensus Estimate for next year from 73 cents to 78 cents. That means that this year’s 57.5% earnings growth is forecast to swell another 24.87% next year.
The secular tailwinds are also undeniable. Consumers are spending more on home security and smart devices as part of the broader “connected lifestyle” trend. That means Arlo isn’t just selling a camera, it’s tapping into an ecosystem that blends AI-powered detection, cloud services, and ease of use. With gross margins expanding as the subscription side of the business scales, Arlo’s financial profile is becoming more attractive with each quarter.
Sure, the mega-cap tech darlings grab the headlines, but sometimes the most compelling opportunities are hiding in plain sight. Arlo may not be a trillion-dollar behemoth, but it’s got the growth trajectory, industry positioning, and analyst backing that make it today’s Bull of the Day.
Nothing hurts quite like biting into a hot glazed donut only to find out the sugar rush doesn’t last. That’s exactly how investors in Krispy Kreme are feeling these days. The iconic donut maker may have brand recognition that rivals Coke or McDonald’s, but Wall Street cares about earnings trends, and right now, the frosting is starting to melt. Looking at the numbers, this one deserves a highlight as today’s Bear of the Day.
For the uninitiated, Krispy Kreme offers doughnut experiences through hot light theater and fresh shops, delivered fresh daily branded cabinets and merchandising units within grocery and convenience stores, quick service restaurants, club memberships, drug stores, and digital channels. It also operates Krispy Kreme company-owned shops and franchise shops.
Over the last couple of months, analysts have been dialing back expectations for Krispy Kreme’s bottom line. In fact, the Zacks Consensus Estimate for the current year has slipped notably, coming from an expected loss of 16 cents to 27 cents. That helped push the stock down to a Zacks Rank #5 (Strong Sell). That’s never a good sign. The culprit? Rising costs and margin pressure. While revenue has shown decent growth thanks to store expansion and “hubs with spokes” distribution, labor inflation, higher commodity prices, and international weakness have eaten into profitability. Last quarter’s EPS missed the mark, highlighting just how thin margins have become.
On the surface, donuts are a simple business with inputs of flour, sugar, oil, and glaze. But in this inflationary environment, those inputs aren’t so sweet. Pair that with a debt load from re-IPO expansion plans and you’ve got a company working hard just to tread water. Even though management has leaned on price increases and co-branded deals with big-box retailers, it hasn’t been enough to keep earnings estimates from drifting lower.
Things are looking up for next year, with estimates now calling for the loss to narrow to 7 cents. The Consumer Products – Staples industry is in the Bottom 27% of our Zacks Industry Rank.
Additional content:
3 Dividend-Paying Transport Equipment & Leasing Stocks to Watch
The Zacks Transportation - Equipment and Leasing industry is currently navigating a challenging macroeconomic environment. The industry grapples with challenges due to persistent inflation, tariff-related tensions and lingering supply-chain disruptions. Geopolitical woes represent further challenges.
Partly due to these headwinds, the industry has underperformed the Zacks S&P 500 Composite and the broader Zacks Transportation sector over the past three months. Over this period, the industry has gained 1.8% compared with the S&P 500 Index’s northward movement of 10.1%. The broader sector has increased 3.3%.
Despite the challenging macroeconomic conditions, industry players such as The Greenbrier Companies, Inc., Ryder Corp. and Air Lease Corp. stand out for their solid investor-friendly steps. Notably, consistent shareholder-friendly initiatives in the form of dividend payouts or share buybacks imply solid financial strength of companies in the Equipment and Leasing industry. Such moves boost investors’ confidence and positively impact the bottom line.
Dividend growth stocks generally belong to mature companies, which are less susceptible to significant market swings, and act as a hedge against uncertainty-induced stock market volatility, as is the case currently. They offer downside protection with their consistent increase in payouts.
Additionally, these companies generally have strong fundamentals like a sustainable business model, a long track of profitability, rising cash flows, good liquidity and a strong balance sheet.
How to Pick Stocks With Solid Dividend Payouts?
Investing in dividend stocks is a prudent strategy that offers a dual advantage — steady income and a cushion against market volatility. It's no wonder investors actively seek companies with a consistent and growing dividend history. These stocks provide a reliable income stream, acting as a buffer during market downturns and contributing to overall portfolio stability.
To guide investors interested in the railroad industry, we came up with certain parameters using the Zacks Stocks Screener. We shortlisted transportation stocks based on the following:
a) A dividend payout ratio of less than 60% (the dividend payout ratio — dividends paid/net income — gives the proportion of earnings paid out as dividends to shareholders. A payout ratio below 60 looks quite sustainable).
b) A dividend yield of greater than 1% (dividend yield denotes the percentage of a company’s share price that it shells out as dividends annually).
The selected stocks have exhibited dividend growth in the past five years, apart from currently carrying a Zacks Rank #3 (Hold) or better.
Greenbrier: Headquartered in Lake Oswego, OR, Greenbrier designs, manufactures, and markets railroad freight car equipment in North America, Europe, and South America. Currently, GBX has a market capitalization of $1.50 billion.
Greenbrier pays out a quarterly dividend of 32 cents ($1.28 annualized) per share, which gives it a 2.72% yield at the current stock price. This company’s payout ratio is 18%, with a five-year dividend growth rate of 3.47%. (Check Greenbrier’s dividend history here).
Greenbrier presently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Greenbrier’s consistent efforts to reward its shareholders through dividends and share repurchases look encouraging. In 2022, Greenbrier paid dividends of $35.8 million (but did not repurchase any shares). In 2023, Greenbrier paid dividends of $36.1 million and repurchased shares worth $56.9 million. In 2024, Greenbrier paid dividends of $38.4 million and repurchased shares worth $1.3 million. During the first nine months of 2025, Greenbrier rewarded its shareholders through dividends of $29.7 million and repurchased shares worth $21.8 million. Such shareholder-friendly moves instill investor confidence and positively impact the company's bottom line.
Ryder: Headquartered in Coral Gables, FL, Ryder operates as a logistics and transportation company worldwide. Currently, R has a market capitalization of $7.64 billion.
Ryder pays out a quarterly dividend of 91 cents ($3.64 annualized) per share, which gives it a 1.94% yield at the current stock price. This company’s payout ratio is 26%, with a five-year dividend growth rate of 9.47%. (Check Ryder’s dividend history here). Ryder presently carries a Zacks Rank #3 (Hold).
We are impressed with Ryder’s consistent efforts to reward its shareholders through dividends and share repurchases. In 2022, Ryder paid dividends of $123 million and repurchased shares worth $557 million. In 2023, Ryder paid dividends of $128 million and repurchased shares worth $337 million. In 2024, Ryder returned $456 million in cash to shareholders through share repurchases and dividends. During the first half of 2025, Ryder paid dividends of $71 million and repurchased shares worth $261 million. Such shareholder-friendly moves instill investor confidence and positively impact the company's bottom line.
Air Lease: Headquartered in Los Angeles, CA, Air Lease operates as an aircraft leasing company engaged in purchasing and leasing commercial jet aircraft to airlines worldwide. With a globally diversified customer base of 116 airlines in 58 different countries, more than 95% of AL’s business revenues originate from airlines located outside of the United States. Steady growth in the fleet, profits earned from aircraft sales and higher end-of-lease revenues contribute to AL's top-line growth. Currently, AL has a market capitalization of $6.76 billion.
AL pays out a quarterly dividend of 22 cents (88 cents annualized) per share, which gives it a 1.45% yield at the current stock price. This company’s payout ratio is 17%, with a five-year dividend growth rate of 8.34%. (Check Air Lease’s dividend history here). Air Lease presently carries a Zacks Rank #3.
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Arlo and Krispy Kreme have been highlighted as Zacks Bull and Bear of the Day

Dutch Bros Inc. (BROS) is pressing the accelerator on expansion, but the key question remains whether transaction growth can keep pace with its ambitious store rollout.
In the second quarter of 2025, revenues surged 28% year over year to $416 million, supported by 6.1% system same-shop sales growth and 3.7% transaction growth. Company-operated shops posted even stronger comps at 7.8%, fueled by nearly 6% transaction gains. These results highlight solid customer demand at a time when consumer traffic has been pressured across much of the restaurant industry.
Expansion remains the centerpiece of Dutch Bros’ strategy. The chain opened 31 shops in second-quarter 2025, entering Indiana as its 19th state and is on track to open at least 160 system shops in 2025. New store productivity is holding at elevated levels, with average unit volumes of $2.05 million, reinforcing management’s confidence in achieving a long-term target of more than 2,000 shops by 2029.
At the same time, the company is leaning on transaction-driving initiatives, menu innovation, increased advertising and its Dutch Rewards program, which accounted for 72% of system transactions. Still, maintaining traffic momentum could prove challenging as competition in the beverage category intensifies and consumer spending normalizes.
For now, Dutch Bros is delivering on both growth and profitability, with adjusted EBITDA up 37% in second-quarter 2025. Investors will be watching closely to see if customer traffic can continue to fuel comps as the brand stretches into new geographies.
Competitors Brewing Up Pressure
Dutch Bros’ expansion drive brings it into sharper competition with both established and emerging players. Starbucks Corporation (SBUX), the global coffee leader, continues to leverage its vast scale, menu innovation and a powerful Rewards program to retain customer loyalty. While U.S. traffic has softened recently, Starbucks’ digital reach and pricing power remain key competitive advantages that Dutch Bros must counter with value and localized engagement.
On the regional front, Krispy Kreme, Inc. (DNUT) has been pushing deeper into beverage offerings as part of its strategy to broaden relevance beyond doughnuts. With an increasing emphasis on coffee and specialty drinks, Krispy Kreme is vying for share in similar dayparts where Dutch Bros thrives. Both brands aim to capitalize on convenience-driven demand, but Dutch Bros’ ability to maintain transaction growth will be critical as larger rivals strengthen their hold in overlapping markets.
BROS’ Price Performance, Valuation and Estimates
Dutch Bros’ stock has surged 22.8% in a month against the industry’s decline of 0.2%.
Price Performance
Image Source: Zacks Investment Research
BROS is trading at a premium to the industry, with a forward 12-month price-to-sales of 6.38X. The figure is well above the industry average of 3.78X.
P/S(F12M)
Image Source: Zacks Investment Research
Over the past 30 days, BROS' 2025 earnings estimates have increased to 66 cents per share from 59 cents.
Image Source: Zacks Investment Research
Dutch Bros currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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Dutch Bros Bets on New Markets: Will Traffic Trends Keep Up?

Key Points
Krispy Kreme's stock is down 73% from its annual highs, now trading at a bargain-bin valuation.
A promising McDonald's delivery deal turned out to be much too expensive on a nationwide scale.
Doughnut vendor Krispy Kreme (NASDAQ: DNUT) used to be hot. Now it's a cautionary tale. As of Aug. 20, the stock has dropped 73% from its yearly peak. It trades at 0.4 times trailing sales and 0.9 times the company's book value.
These ratios are typical of companies in deep financial trouble. But how did Krispy Kreme get to this desperate situation?
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It turns out that a potentially awesome partnership backfired. Even the final act of shutting down that deal left Krispy Kreme scrambling to fight the massive infrastructure costs that came along with it. At this point, Krispy Kreme investors might wish the company had never agreed to that costly McDonald's (NYSE: MCD) contract.
What happened to the McDonald's deal?
Krispy Kreme started shipping doughnuts to McDonald's restaurants in October, 2022. The limited test run in Louisville, Kentucky, saw decent results, inspiring a larger-scale implementation in 2024.
But the nationwide rollout was never completed, as Krispy Kreme pulled the plug on this project in the second quarter of 2025. Management noted that the doughnut delivery program was too expensive on a networkwide scale. Furthermore, it will take several quarters to unwind the attempts to build an effective production and delivery network in support of the McDonald's deal.
What's next for Krispy Kreme?
As a result, Krispy Kreme is reviewing its entire logistics setup in search of more cost-effective solutions. The company is ending hundreds of underperforming delivery contracts, though more than half of the shuttered deals will be replaced with higher-volume routes by the end of 2025.
That may sound like an empty promise, but the partners for these new routes include giant household names such as Walmart, Costco, and Kroger. As long as Krispy Kreme can focus these operations on the most profitable delivery routes, the company might be poised for a long-term turnaround.
But that's a pretty speculative forecast. For now, Krispy Kreme investors are simply disappointed in the failed McDonald's experiment and its financial aftermath.
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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.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Why Is Wall Street So Bearish on Krispy Kreme? There's 1 Key Reason.

Key Points
The DORKs are Krispy Kreme, Opendoor Technologies, Rocket Companies, and Kohl's.
The acronym is meant to be funny, but the risks investors are taking on with this investment fad are very serious.
If you can't afford to lose every penny you invest, do not buy any of the DORKs.
The acronym DORKs was selected by some Wall Street "comedians" because that term probably brings to mind middle school memories. It's a win from a marketing perspective and much better than, say, KORDs would have been. But catchy acronyms don't make good investments, good stocks do. Which is why investors might want to be cautious before buying the DORKs.
What are the DORKs?
The term DORKs is a shorthand way to refer to the stocks of Krispy Kreme (NASDAQ: DNUT), Opendoor Technologies (NASDAQ: OPEN), Rocket Companies (NYSE: RKT), and Kohl's (NYSE: KSS). In case you don't see it, the first letter of each of these companies' tickers spells DORK. This looks like a new round of what were called meme stocks a few years ago. Indeed, the DORKs have seen shocking price moves despite the fact that they are facing often material difficulties as businesses.
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Before getting into three specific reasons for avoiding the DORKs today, investors need to understand that these are risky investments. Unless you can afford to lose every penny you invest, you shouldn't buy the DORKs hoping to win the Wall Street lottery. Here are three reasons to be skeptical of the DORKs.
1. Wall Street loves to sell hot ideas
The Nifty 50, the BRICS, the "Magnificent Seven", and now the DORKs. These are all quick and catchy terms used to describe some investment trend -- or perhaps it would be better to say fad. There are reasons behind the creation of each term. And, in many cases, the reasons have merit. But, at the end of the day, these are all terms that sell an idea or a dream. The fun acronym or nickname makes the idea seem more real or official.
It is amazing how quickly Wall Street jumps on things that will help increase trading or that will help promote a product. Indeed, it wasn't long until there was a Magnificent Seven exchange-traded fund (ETF), such as Roundhill Magnificent Seven ETF (NYSEMKT: MAGS). There's even a more aggressive option, the Roundhill Daily 2X Long Magnificent Seven ETF (NYSEMKT: MAGX). The DORKs grouping is new, but there's probably someone on Wall Street looking to capitalize on this with a product.
But don't mistake what's happening now: The DORKs acronym helps to popularize the idea of investing in Krispy Kreme, Opendoor Technologies, Rocket Companies, and Kohl's, and that increases trading volume. More trading volume means more money for a host of Wall Street firms. Any time you see a catchy name used to identify a stock investment idea, you should worry because you are being marketed to either directly or indirectly. Wall Street wants you to trade, trade, trade -- and it doesn't matter if you make money or not.
2. Investment fads don't last
There's a saying, or better a warning, on Wall Street that trees don't grow to the sky. Essentially, even good investment ideas can't rise in price forever. All stocks go up and down over time. Well-run companies go through good times and bad times. And, thus, investors have to be prepared for zigzags when they buy a stock and not simply a rocket ship to the moon.
This is the basis behind buy-and-hold investing. But it only really works if, like Warren Buffett of Berkshire Hathaway, you start off with buying good companies (hopefully at attractive prices) and then hold for the long term so you can benefit from their growth. Just because a stock is caught up in an acronym or some investment fad does not mean it is a good company. But it does suggest that the price of the stock is probably on the expensive side, at least while the fad is still running.
But eventually a mercurial Wall Street always seems to get bored with investment fads. And then it moves on to something new. The old fad usually flames out. Be forewarned: Fads, no matter how exciting, don't last.
3. Nobody is perfect, particularly on Wall Street
So let's bring the first two points together. Something on Wall Street has caught the attention of investors and has been turned into a marketable concept, either directly or just via a media frenzy. The goal is to make you feel like you are missing out on something. But the fad that spawned the marketable concept, in this case the DORKs, isn't likely to be a sustainable long-term trend. However, you are still watching as it seems like other investors are making millions while you stand on the sidelines and do nothing!
Resist the urge to jump on fads like the DORKs. First off, how will you know when to sell? It is difficult, if not impossible, to time the broader market or individual stocks with any sustainable regularity. Buying into risky investment themes increases the likelihood that you will end up buying late and holding too long. After all, if it already has an acronym, you aren't the first one in the door. Always remember that someone is buying that stock at the top, that's how the price got so high. The last person in the door tends to lose money.
And here's the unfortunate part of investment fads. People love to talk about how much money they made, but few if any will discuss how much money they lost. So you get positive comments when things are going well and then virtual silence when things go poorly. The financial pain that fads inflict on investors who are lured in late simply leaves the latecomers with private emotional duress.
Investing should be fun; don't destroy that for yourself
I wish I could claim to have never bought into a fad on Wall Street. Maybe it's a rite of passage or just human nature. But I can tell you from experience that hot Wall Street themes like DORKs are not great investment ideas. Maybe there's a kernel of truth in the mix, but the long-term outcome is highly likely to be bad for you if you get sucked in with the crowd. And losing money, particularly early in your investment life, can lead you to shy away from Wall Street, which is truly a powerful wealth building tool if you are careful and thoughtful about your investments.
Unless you can afford to lose every penny you invest, you are better off avoiding the DORKs. If you are still tempted, I suggest you go read the annual reports for Berkshire Hathaway instead. Buffett's folksy investment wisdom will entertain and educate. And it will help you go down the same slow and steady path that led to Berkshire Hathaway outperforming the market over the long term even as investment fad after investment fad (like the DORKs) eventually imploded.
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Reuben Gregg Brewer has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Berkshire Hathaway. The Motley Fool recommends Rocket Companies. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

3 Reasons Investors Might Want to Be Cautious Before Investing in the DORKs

Key Points
Krispy Kreme’s revenue is deteriorating, eating into already-thin profit margins.
Although it’s looking to pare back its debt, doing so could prove difficult at the same time it’s trying to reshape its operation.
Becoming a meme stock only makes DNUT stock even more difficult to own right now.
It's been a tough past few months for Krispy Kreme (NASDAQ: DNUT) shareholders. Although the stock's perked up this month after becoming one of the market's favorite meme stocks, this gain still doesn't come close to unwinding the ticker's 66% setback from its September peak. Shares are now down 77% from their 2022 high, despite the recent bounce from the record low made in June.
Veteran investors know that the best time to buy a great stock is "on sale." Krispy Kreme shares are most definitely trading at a discount. However, a stock isn't necessarily great simply because it dipped.
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Here's some food for thought if this ticker has made its way back onto your radar.
Krispy Kreme, up close and personal
Krispy Kreme is one of the U.S.'s favorite doughnut brands, selling its goods through thousands of grocers and convenience stores all over the world, but also operating over 1,400 of its own stores where consumers can enjoy a freshly made treat. The company did over $1.66 billion worth of business last year, leveraging the sheer deliciousness of its doughnuts.
There's no denying the drama undermining the stock's price, however.
Case in point: After looking like it was going to turn into a fruitful partnership when it first materialized in late 2022, in May of this year, fast food giant McDonald's discontinued its sales of Krispy Kreme's doughnuts. Although it was never disclosed exactly how much business this arrangement was generating for Krispy Kreme, in light of the sheer reach of McDonald's, it arguably wasn't insignificant.
The recent decision to cut its dividend payments doesn't exactly bolster the bullish argument, either.
Krispy Kreme's woes began well before the dividend cut and the end of its relationship with McDonald's. The divestiture of its stake in Insomnia Cookies beginning late last year pared back reported revenue as well. People are just eating healthier, too, looking to lose some of the bad eating habits -- and some of the pounds -- added during the COVID-19 pandemic.
Krispy Kreme picked up weight as well during this time, in the form of debt. As of the end of the first quarter of 2025, the doughnut powerhouse was nursing a little over $1.5 billion worth of long-term liabilities. That doesn't seem like much, but it's a lot for a $1.76 billion outfit that's barely breaking even. It's also a lot for an organization that was sitting on only a little over $1 billion in long-term debt four years ago, at the peak of the coronavirus contagion that was proving complicated for all businesses.
Now the company wants to become bigger, but it recognizes that to do so, it will first need to become better. That means de-leveraging its balance sheet by paying down at least some of the debt that's ultimately eating into profits. That's not easy to do if you're running the business you want to evolve and expand while you're also shrinking some aspects of the operation.
But there's always a chance that things will go as hoped.
Enough reasons not to bite
The question remains, however... is Krispy Kreme stock a buy following what's turned into a prolonged, sizable sell-off?
From a valuation perspective, not really. Analysts expect the company to remain in the red this year -- and next -- as it suffers the fallout from a couple of flopped partnerships and the new cost of paying down debt. It's also shifting from in-house to outsourced logistics that may end up costing it more in the long run. After all, a third-party delivery service will be pricing in at least a little profit for itself, which Krispy Kreme didn't have to pay while it was handling its own transportation duties.
Meanwhile, although it didn't explain exactly what it meant or how much it will cost, Krispy Kreme's plans to "strengthen [its] performance-based culture" ultimately sound like an expense. At the same time, while "deploying capital to only the highest returning investments" makes enough superficial sense, the implication is that at least some semi-important initiatives could go underfunded, if not entirely unfunded.
In other words, all its plans are easier said than done, and all of them come at a cost of one sort or another.
Then there's the not-so-small matter of suddenly becoming a meme stock.
A meme stock is a stock that's attracted the attention of an individual or group of traders specifically because they can influence that ticker's price. Sometimes they're talking it up because they own it. Other times, they're talking it down because they've shorted it, which is a bet that the stock's price will sink. All these groups or individuals will primarily exert this influence online, using clever digital imagery with a short message that's usually shared online using social media. You know these images as memes.
Sometimes it works -- and sometimes it doesn't. Given that the targeted stocks tend to be small-caps or low-float issues, these efforts usually work at least a little, but only for a little while. The bullish memes have certainly lifted Krispy Kreme shares out of the funk they were in through June.
You want nothing to do with any ticker being targeted by anyone only looking to cash in on a short-term move they're creating. See, it works... but only right up until the point it doesn't. Once it doesn't work anymore, it all unravels in a hurry. And you never really know when that reversal is coming.
Not now, but maybe later
Don't misunderstand. Whether or not Krispy Kreme was one of the market's most active meme stocks at this time, there's still not enough of a bullish argument to justify the risk you'd be taking by buying it.
Face it. This company's struggling to remain profitable in the midst of a complicated overhaul. It might all work out in the end. However, there could be plenty of misery in the meantime. Being a meme stock only adds to the near-term uncertainty. There are far better risk-versus-reward scenarios to choose from right now.
Still, you have to respect the willingness to at least try to fix what's broken. Plenty of companies would be too fearful of making any major changes or doing anything differently than what they were already doing. It might be fun to check back in on Krispy Kreme two to three years down the road, which is when analysts collectively believe it's going to be fully out of the red and back in the black.
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 $636,628!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,063,471!*
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*Stock Advisor returns as of July 21, 2025
James Brumley 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.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Krispy Kreme Stock Sell-Off: Should You Buy the Dip?

Key Points
Krispy Kreme appears to have been chosen as one of the next meme stocks.
Short interest in the stock was very high not too long ago.
The company has been struggling.
Shares of iconic donut brand Krispy Kreme (NASDAQ: DNUT) traded over 11% higher, as of 11:16 a.m. ET today. The stock had been up close to 39% in pre-market trading and had a big day yesterday as well. It's clear that meme stock investors have added Krispy Kreme to their list.
The return of meme stocks
While meme stocks never went away, interest has clearly been rejuvenated as the stock market has significantly rebounded from lows in April. Other meme stocks like Opendoor and Kohl's have also blasted higher.
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"First, retail trading forums and social platforms have once again become engines of crowd momentum," Capital.com's senior market analyst Daniela Sabin Hathorn wrote in a research note, according to MarketWatch. "Second, these stocks are all heavily shorted, setting the stage for violent short squeezes when buying pressure ramps up."
Short interest in Krispy Kreme had been as high as roughly 28%, according to MarketWatch. In the first quarter of 2025, Krispy Kreme reported a net loss of over $33 million, while revenue decline about 15% year over year.
Invest at your own risk
As many retail investors hopefully know by now, investing in meme stocks is incredibly risky, as evidenced already by today's move, because these stocks no longer trade on fundamentals. Many reach dizzying highs, but eventually come down over time. It's not a good sign to see a company reporting higher losses on declining revenue.
I would recommend staying away from Krispy Kreme, but if you find investing in meme stocks is a fun kind of thrill, only invest what you can afford to lose.
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 $641,800!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,023,813!*
Now, it’s worth noting Stock Advisor’s total average return is 1,034% — a market-crushing outperformance compared to 180% for the S&P 500. Don’t miss out on the latest top 10 list, available when you join Stock Advisor.
*Stock Advisor returns as of July 21, 2025
Bram Berkowitz 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.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Why Shares of Krispy Kreme Are Surging Today

Stocks Mixed: Tariffs, Earnings Season, Powell’s Future Dominate the Headlines
Stocks are mixed thus far this week amid a flurry of trade policy headlines, the start of earnings season, and rumors about Fed Chair Jerome Powell’s future. Last night, President Donald Trump announced that a deal had been signed with Japan. Japan will invest $550 billion in the US (of which the US will receive 90% of the profits). Additionally, the US will levy a 15% tariff on Japanese goods. President Trump’s August 2nd trade deadline is approaching quickly for the countries that have not yet signed deals with the United States.
That said, Treasury Secretary Scott Bessent has promised that there are several trade deals likely to be signed in the current days, and for larger deals like the EU, the August deadline is flexible, reiterating that the US would rather wait longer for better deals than rush them. Meanwhile, stocks flushed lower midday Tuesday after a fake rumor surfaced that embroiled Fed Chair Jerome Powell had been fired. Powell has been facing an onslaught of criticism amid his ‘hawkish’ monetary policy. However, many rate-sensitive areas have rallied over the past few days, including housing stocks and small caps, signaling that rate cuts may be on the horizon.
Are Momentum Stocks Signaling Short-term Market Froth?
While the price action of the major indices remains bearish, momentum stocks signal that it may be time for Wall Street investors to take their foot off the gas pedal. Below are four reasons:
· Signs of frothiness appear amid rallies in heavily shorted “retail stocks”: One sign of an overheated market that I have witnessed over the years is when “junk off the bottom” starts to rally. That is, cheap, beaten-down, heavily shorted, unprofitable stocks begin to rally. For instance, OpenDoor Technologies (OPEN) ripped as much as 500% this month. Meanwhile, similar, heavily-shorted and beaten-down stocks like Krispy Kreme (DNUT), Beyond (BYON), Kohls (KSS), and Beyond Meat (BYND) are experiencing relief rallies.
Image Source: Zacks Investment Research
· Options speculation frothiness: Additionally, “0DTE” (zero days until expiration) options now account for around two-thirds of all daily options volumes. Such froth suggests that retail investors may have a case of “irrational exuberance” in the short-term.
Image Source: Goldman Sachs Global Investment Research
· Gravity: The S&P 500 Index has trended above its 20-day moving average for roughly two months. Historically, gravity takes hold at this juncture, and stocks are due for some profit-taking.
Image Source: @subutrade
· Back half of July seasonality: Since 1950, the S&P 500 Index has been strong in the first half of July before paring gains in the back half of the month.
Image Source: Carson Investment Research
Markets Can Stay Irrational
As the old Wall Street adage goes, “Markets can stay irrational longer than you can stay solvent.” The clues above do not mean to sell everything or to go short, but instead be aware that the music can stop at any moment, and risk management is warranted.
Bottom Line
Signs of ‘irrational exuberance’ are emerging in US stock markets as low-quality momentum stocks squeeze shorts and rampant short-term options trading proliferates.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Indicator	TTM Median
P/E	71.41 18.21
Price/Sales	1.12 0.65
P/B	1.59 1.75
P/FCF	0.00 14.46

Indicator	TTM Median
ROE	2.34 15.91
ROA	0.91 5.60
ROI	1.39 9.40
Net Worth	1.94 0.91
Quick Ratio	0.28 0.91
Current Ratio	0.35 1.45

Indicator	TTM Median
Net Profit Margin	1.69 6.40
Operating Margin	-0.12 8.93
Gross Margin	75.25 38.46
Return on tangible equity	-3.80 23.70

Indicator	TTM Median
EPS	0.06 0.43
EPS Forecast	0.02 0.39
Revenue	439.00M 184.50M
Gross Profit	331.00M —
EBITDA	15.00M —

Krispy Kreme, Inc.

TTM metrics for the latest quarter under IFRS and their historical dynamics

Valuation

Debts

Efficiency

Other ratios

Revenue