Krispy Kreme, Inc.

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!*
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*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.

Low-Quality Momentum Stocks Soar: Are Markets too Frothy?

The NASDAQ 100 Pre-Market Indicator is up 34.36 to 23,097.94. The total Pre-Market volume is currently 249,543,904 shares traded.
The following are the most active stocks for the pre-market session:
Opendoor Technologies Inc (OPEN) is -0.28 at $2.60, with 27,481,801 shares traded. OPEN's current last sale is 273.68% of the target price of $0.95.
GoPro, Inc. (GPRO) is +0.73 at $2.10, with 21,373,014 shares traded. GPRO's current last sale is 700% of the target price of $0.3.
Krispy Kreme, Inc. (DNUT) is +1.36 at $5.49, with 20,274,273 shares traded. DNUT's current last sale is 114.38% of the target price of $4.8.
Direxion Daily TSLA Bull 2X Shares (TSLL) is -0.04 at $12.55, with 6,996,795 shares traded. This represents a 99.52% increase from its 52 Week Low.
Abivax SA (ABVX) is +49.5 at $59.50, with 4,949,205 shares traded. As reported by Zacks, the current mean recommendation for ABVX is in the "buy range".
NIO Inc. (NIO) is +0.2212 at $5.23, with 4,454,438 shares traded. NIO's current last sale is 130.78% of the target price of $4.
Rocket Companies, Inc. (RKT) is +1.5 at $17.50, with 4,323,651 shares traded. RKT's current last sale is 125% of the target price of $14.
NVIDIA Corporation (NVDA) is +2.1095 at $169.14, with 3,596,325 shares traded. As reported by Zacks, the current mean recommendation for NVDA is in the "buy range".
AT&T Inc. (T) is -0.82 at $26.60, with 1,871,931 shares traded. Smarter Analyst Reports: AT&T Posts Strong Q3 Results on Customer Growth
BigBear.ai, Inc. (BBAI) is +0.1212 at $7.49, with 1,497,626 shares traded. BBAI's current last sale is 149.82% of the target price of $5.
Kohl's Corporation (KSS) is -0.1 at $14.24, with 1,412,891 shares traded. KSS's current last sale is 178% of the target price of $8.
Stellantis N.V. (STLA) is +0.6 at $9.87, with 1,288,085 shares traded.STLA is scheduled to provide an earnings report on 7/29/2025, for the fiscal quarter ending Jun2025.
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 Jul 23, 2025 : OPEN, GPRO, DNUT, TSLL, ABVX, NIO, RKT, NVDA, T, BBAI, KSS, STLA

The NASDAQ 100 After Hours Indicator is down -38.49 to 23,025.09. The total After hours volume is currently 134,687,201 shares traded.
The following are the most active stocks for the after hours session:
Block, Inc. (XYZ) is -0.17 at $79.10, with 55,465,504 shares traded. As reported by Zacks, the current mean recommendation for XYZ is in the "buy range".
Opendoor Technologies Inc (OPEN) is -0.03 at $2.85, with 9,388,205 shares traded. OPEN's current last sale is 300% of the target price of $0.95.
Lucid Group, Inc. (LCID) is -0.07 at $3.06, with 8,165,390 shares traded. LCID's current last sale is 102% of the target price of $3.
Chevron Corporation (CVX) is +0.14 at $150.18, with 4,711,341 shares traded. Over the last four weeks they have had 3 up revisions for the earnings forecast, for the fiscal quarter ending Jun 2025. The consensus EPS forecast is $1.67. CVX's current last sale is 91.29% of the target price of $164.5.
UiPath, Inc. (PATH) is -0.0011 at $12.59, with 4,673,285 shares traded. PATH's current last sale is 89.92% of the target price of $14.
Sibanye Stillwater Limited (SBSW) is unchanged at $9.58, with 3,622,404 shares traded. SBSW's current last sale is 174.18% of the target price of $5.5.
CNH Industrial N.V. (CNH) is unchanged at $13.06, with 3,264,983 shares traded. As reported by Zacks, the current mean recommendation for CNH is in the "buy range".
NVIDIA Corporation (NVDA) is -0.5319 at $166.50, with 2,916,588 shares traded. As reported by Zacks, the current mean recommendation for NVDA is in the "buy range".
Aurora Innovation, Inc. (AUR) is unchanged at $6.17, with 2,855,778 shares traded. AUR's current last sale is 51.42% of the target price of $12.
Krispy Kreme, Inc. (DNUT) is +0.681 at $4.81, with 2,854,882 shares traded. DNUT's current last sale is 80.18% of the target price of $6.
Macy's Inc (M) is -0.06 at $12.95, with 2,513,456 shares traded. M's current last sale is 107.92% of the target price of $12.
Hertz Global Holdings, Inc (HTZ) is -0.09 at $7.64, with 2,186,301 shares traded. HTZ's current last sale is 254.67% of the target price of $3.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

After Hours Most Active for Jul 22, 2025 : XYZ, OPEN, LCID, CVX, PATH, SBSW, CNH, NVDA, AUR, DNUT, M, HTZ

Looking at options trading activity among components of the Russell 3000 index, there is noteworthy activity today in Etsy Inc (Symbol: ETSY), where a total volume of 29,488 contracts has been traded thus far today, a contract volume which is representative of approximately 2.9 million underlying shares (given that every 1 contract represents 100 underlying shares). That number works out to 60.7% of ETSY's average daily trading volume over the past month, of 4.9 million shares. Especially high volume was seen for the $60 strike call option expiring July 25, 2025, with 4,984 contracts trading so far today, representing approximately 498,400 underlying shares of ETSY. Below is a chart showing ETSY's trailing twelve month trading history, with the $60 strike highlighted in orange:
Alphabet Inc (Symbol: GOOG) options are showing a volume of 163,934 contracts thus far today. That number of contracts represents approximately 16.4 million underlying shares, working out to a sizeable 59.8% of GOOG's average daily trading volume over the past month, of 27.4 million shares. Especially high volume was seen for the $195 strike call option expiring July 25, 2025, with 9,824 contracts trading so far today, representing approximately 982,400 underlying shares of GOOG. Below is a chart showing GOOG's trailing twelve month trading history, with the $195 strike highlighted in orange:
And Krispy Kreme Inc (Symbol: DNUT) saw options trading volume of 22,476 contracts, representing approximately 2.2 million underlying shares or approximately 59.8% of DNUT's average daily trading volume over the past month, of 3.8 million shares. Especially high volume was seen for the $5 strike call option expiring August 15, 2025, with 8,292 contracts trading so far today, representing approximately 829,200 underlying shares of DNUT. Below is a chart showing DNUT's trailing twelve month trading history, with the $5 strike highlighted in orange:
For the various different available expirations for ETSY options, GOOG options, or DNUT options, visit StockOptionsChannel.com.
Also see:
Historical Earnings
OPRT Historical Stock Prices
POAI Insider Buying
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Noteworthy Tuesday Option Activity: ETSY, GOOG, DNUT

Dutch Bros Inc. BROS is leaning into innovation as a key lever to boost traffic and deepen customer engagement across its rapidly growing footprint.
In first-quarter 2025, the coffee chain rolled out a series of creative limited-time offerings (LTOs), including Sweet Cereal Sips and the Spring Fever Dream Trio, playful concoctions featuring nostalgic flavors and eye-catching elements like Poppin’ Boba and rubber ducks. These menu innovations helped the company lap last year’s strong LTOs, driving solid same-shop transaction growth of 1.3% and overall revenue growth of 29%.
But Dutch Bros is not stopping at beverages. A new food pilot has expanded from eight to 32 shops, testing hot protein items aimed at capturing additional morning visits, a highly competitive daypart. While food currently accounts for less than 2% of sales, leadership sees it as a strategic opportunity to lift frequency and beverage attachment without compromising throughput or employee satisfaction. Early results are promising, with further expansion and a broader rollout expected in 2026.
This innovation-driven approach is part of a broader strategy to develop multiple sales layers, supported by the Dutch Rewards loyalty program, now responsible for 72% of transactions, and a growing Order Ahead business, which has reached 11% of the mix.
As competition in the beverage sector intensifies, Dutch Bros’ ability to turn product experimentation into sustained foot traffic could be pivotal.
How Dutch Bros Stacks Up Against Starbucks and Krispy Kreme
In the race to drive customer traffic through innovation, Dutch Bros faces strong competition from both legacy brands and reinvented players. Starbucks SBUX continues to lead in beverage innovation and digital engagement, frequently launching seasonal drinks and leveraging its mobile app and loyalty program to drive repeat visits. Its extensive food menu gives Starbucks a strong edge in the morning daypart, an area Dutch Bros is aggressively targeting with the new food pilot.
On the other hand, Krispy Kreme DNUT is broadening its brand beyond doughnuts, with increasing emphasis on coffee and limited-time beverage offerings. Krispy Kreme is testing new menu combinations and partnerships to encourage bundled purchases and drive frequency, particularly during breakfast and snack hours.
BROS’ Price Performance, Valuation and Estimates
Dutch Bros stock has lost 10% in a month against the industry and the S&P 500’s growth of 1.7% and 4.3%, respectively.
Image Source: Zacks Investment Research
BROS is trading at a premium to the industry, with a forward 12-month price-to-sales of 5.8X. The figure is well above the industry average of 4.03X.
P/S(F12M)
Image Source: Zacks Investment Research
Over the past 30 days, BROS' 2025 earnings estimates have inched down to 59 cents per share from 61 cents.
Image Source: Zacks Investment Research
The stock currently carries a Zacks Rank #4 (Sell).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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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.

Dutch Bros Expands Menu: Can Innovation Drive Foot Traffic?

Krispy Kreme (NASDAQ: DNUT) stock closed out Monday's trading with big gains. The company's share price rose 9.8% in a day of trading that saw the S&P 500 index and the Nasdaq Composite index rise 0.5% and 0.4%, respectively, and set new record highs. The stock had been up as much as 11.7% before pulling back before the day's close.
In addition to bullish momentum across the broader market, Krispy Kreme stock was pushed higher thanks to inclusion in new indexes. Despite today's pop, the doughnut specialist's share price is still down 71% across 2025's trading.
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Krispy Kreme stock jumps on index inclusion
As part of the annual recombination of Russell indexes that occurs at the midyear point, Krispy Kreme stock has been included in the Russell 2000 Value index, the Russell 2500 Value index, the Russell Small Cap Comp Value index, and the Russell 3000E Value index. Due to the recombination, exchange-traded funds (ETFs) and other funds that track these indexes have to buy Krispy Kreme stock in order to reflect its inclusion.
Along with positive momentum lifting the broader market today, buying action from the new index inclusions helped Krispy Kreme shares see a strong rally today. The stock had also been facing downward pressures recently following the ending of the company's partnership with McDonald's, but shares are now down just 1% over the last month.
What's next for Krispy Kreme?
Krispy Kreme has been struggling to energize its growth engine. The business saw revenue fall roughly 15% year over year to $357.2 million in the quarter, and the business posted a non-GAAP (adjusted) loss per share of $0.05 in the period -- swinging from a profit of $0.07 per share in last year's quarter.
Now valued at roughly $496 million, Krispy Kreme is trading at just 32% of this year's expected sales. While the company may look cheap on that valuation basis, signs that the business' sales and margins can stabilized may be needed in order for the stock to see a sustained rally.
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 $713,547!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $966,931!*
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*Stock Advisor returns as of June 30, 2025
Keith Noonan 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 Skyrocketed Today

Generative artificial intelligence (AI) is taking Wall Street by storm -- minting plenty of millionaires in the process. The technology promises to allow machines to replace human labor in tasks that require knowledge, memory, and communication. And if analysts at Bloomberg are correct, it could grow to become a $1.3 trillion market as soon as 2032.
Naturally, small companies like SoundHound AI (NASDAQ: SOUN) would like to claim a slice of this epic opportunity. Let's dig deeper to see if it has what it takes to succeed over the next five years and beyond.
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A very grounded take on the AI opportunity
While many AI software companies target new-fangled business models that can be difficult for some to understand, SoundHound keeps things simple. It aims to capitalize on the natural synergy between large language models (LLMs) and older technologies like speech recognition to create voice AI platforms with use cases in customer service, automotive assistants, and many other applications.
The company has already secured several partnerships with mainstream restaurants like Krispy Kreme and White Castle, which are using its software in some of their drive-through locations.
The value proposition is clear. Customers hate long lines, and SoundHound claims its automated systems can currently improve ordering time by around 10%, potentially adding almost $200,000 to a single location's annual revenue and boosting its margins by saving on human labor costs. Remarkably, SoundHound's management also claims that these systems are more accurate than humans, which will be key to customer satisfaction and long-term industry adoption.
SoundHound has also seen success in the automotive industry, securing partnerships with Stellenatis (which has its voice assistants installed in several of its European brands) and Lucid Motors, which partnered with SoundHound for its Lucid Assistant launched in January.
Is SoundHound ready for prime time?
SoundHound's results show mixed performance. On the surface, everything looks great. First-quarter revenue soared 151% year over year to $29.1 million, although net losses expanded slightly to $22.3 million. However, this growth wasn't solely the result of the organic adoption of SoundHound's core, voice-enabled AI software solutions.
Instead, the expansion has been driven by acquisitions, including restaurant ordering platform Allset and enterprise AI specialist Amelia, both purchased in 2024. While these buyouts are boosting growth, they make it harder to track the success of SoundHound's original business. Investors should expect the company's growth to decelerate sharply as quarterly comparables become more difficult next year.
Acquisitions can also put pressure on a company's liquidity and cash flow, especially if they aren't profitable. Despite the surge in revenue, SoundHound's gross margin declined from around 60% to 37%, likely reflecting the impact of the new businesses it has added to its portfolio.
That said, with $246 million in cash and no debt, the company looks capable of maintaining its current level of cash burn for now.
Is SoundHound stock a buy?
Any company with a pile of cash can generate superficial growth by constantly buying other companies. However, the challenge for SoundHound will be to turn this roll-up strategy into a cohesive and synergistic business over the next five years; that's easier said than done.
According to an analysis conducted by Fortune magazine, a whopping 70% to 75% of acquisitions fail to meet their stated objectives because of factors like overpayment and poor synergies with the parent company. With that in mind, investors shouldn't get carried away by SoundHound's near-term growth. The future will be challenging. And it may make sense to wait for more information before considering a position in the stock.
Should you invest $1,000 in SoundHound AI right now?
Before you buy stock in SoundHound AI, 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 SoundHound AI 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 $713,547!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $966,931!*
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*Stock Advisor returns as of June 23, 2025
Will Ebiefung has no position in any of the stocks mentioned. The Motley Fool recommends Stellantis. 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.

Where Will SoundHound Stock Be in 5 Years?

One of the great American growth themes throughout the years has been quick-service restaurant (QSR) expansion. Success stories are abundant, with companies like McDonald's and Starbucks growing to have more than 13,000 locations in the U.S. alone.
Store growth is a powerful driver and has ultimately helped propel these stocks over the years. Now, not every restaurant expansion story is successful. Some restaurant operators struggle moving outside their region, like Jack in the Box. Others fail because they become too aggressive and try to expand too quickly, taking on debt, like Krispy Kreme.
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That said, restaurant stocks with a lot of expansion still ahead can be great investments. Let's look at four potential great options.
1. Chipotle
Chipotle Mexican Grill (NYSE: CMG) has been a restaurant expansion story for more than 20 years, and it still has a solid runway ahead. At the end of the first quarter, it operated 3,781 company-owned restaurants. It plans to open between 315 to 345 new company-owned locations in 2025, which would represent 9% unit growth this year.
Over the long term, the company has talked about operating up to 7,000 locations in North America. At its current pace, it would reach its goal in the next 12 to 13 years. That's a solid runway for one of the most successful restaurant operators of the last 20 years.
Meanwhile, the company has already begun to plant the seeds for international expansion. It has a few locations in Europe and plans to enter Mexico next year through a partnership agreement with Alsea. Chipotle is also currently expanding in the Middle East through a partnership with Alshaya Group, opening three restaurants in Kuwait and two in Dubai.
2. Cava
Cava (NYSE: CAVA) has been one of the hottest restaurants over the past year, with the fast casual chain reporting four straight quarters of positive double-digit, same-store sales. The company is seeing solid traffic gains despite increased prices, which is something a younger Chipotle saw in its early days.
With only 382 locations at the end of last quarter ended April 20, Cava is just at the beginning of its expansion story. The company plans to open between 64 to 68 new locations this fiscal year, which would be high-teens unit growth. Its goal is to reach at least 1,000 restaurants by 2032, which would be nearly triple the number of locations it has today.
The company has been using what it calls a "coastal smile" expansion strategy, beginning its initial expansion along the U.S. East Coast, down through the Sunbelt, and into California. With this, it has been able to take advantage of population trends and focus on areas most likely interested in Mediterranean cuisine. However, it has since begun to expand into the Midwest into cities like Chicago and Detroit.
The company is using a sound, measured expansion strategy that should set it up for long-term success.
3. Dutch Bros
Coffee shop operator Dutch Bros (NYSE: BROS) has the opportunity to be the next big regional-to-national expansion story. The Pacific Northwest company currently has 1,012 shops, of which 695 were company-owned, at the end of Q1 in only 18 states.
While the company primarily operates in the western U.S., it also has 27 stores in Tennessee that appear to be performing well, showing its opportunity in other areas of the country. It is currently looking to open at least 160 new locations this year, which would be about 16% unit growth. It believes it can reach 2,029 locations by the end of 2029 and sees a total market opportunity for 7,000 shops.
In addition, the company has been seeing solid same-store sales and has a real opportunity to grow its sales by adding more food items to its menu. Currently, only 2% of its sales come from food, while nearly 20% of Starbucks sales are food, so this is a big opportunity.
The company's stores are relatively small with no indoor seating, so its cost to build new shops is relatively inexpensive. Meanwhile, with systemwide annual unit volumes (AUV) of around $2 million per store, it tends to see short payback periods for its new opening investments.
4. Shake Shack
There is nothing more American than a good burger, and Shake Shack (NYSE: SHAK) arguably makes some of the best. It also has a strong expansion story in front it.
At the end of 2024, it operated 579 locations, of which 373 were in the U.S. However, more than 97% of its revenue came from the U.S., and it is looking to ramp up its U.S. expansion. It plans to open 45 to 50 new company-owned locations this year, which would be mid-teens unit growth. It also plans to open between 35 to 40 licensed restaurants.
The company said last quarter that it would open up the most new Shake Shack locations in its history this year, while reducing construction costs by 10% despite tariffs. It notes that it is entering new geographies and seeing a lot of success, and recently had the highest sales openings in the history of the brand in the Southwest for a suburban location with a drive-thru.
New York and California are more than 30% of Shake Shack's store base, so as it sees success in new markets, it has a long runway of expansion growth in front of it. It thinks it can support at least 1,500 locations in the U.S. over the long term, which would be about quadruple the number of U.S. locations it has today.
Should you invest $1,000 in Chipotle Mexican Grill right now?
Before you buy stock in Chipotle Mexican Grill, 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 Chipotle Mexican Grill 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 $642,582!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $829,879!*
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*Stock Advisor returns as of May 19, 2025
Geoffrey Seiler has positions in Shake Shack. The Motley Fool has positions in and recommends Chipotle Mexican Grill and Starbucks. The Motley Fool recommends Cava Group and Dutch Bros and recommends the following options: short June 2025 $55 calls on Chipotle Mexican Grill. The Motley Fool has a disclosure policy.
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American-Made Growth: 4 Top Restaurant Stocks Fueling U.S. Expansion

Krispy Kreme (NASDAQ: DNUT) has left shareholders with a glazed-over look of disappointment. As of this writing, the stock has crumbled by a disastrous 69% year to date amid a string of weaker-than-expected financial results.
The donut-making giant is struggling with sliding demand and several setbacks in its global expansion strategy. The headline numbers are far from tempting, but this level of extreme volatility can sometimes offer investors the chance to snag a sweet deal, assuming the company can turn things around.
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The case to sell Krispy Kreme stock
Founded 87 years ago, Krispy Kreme didn't invent the doughnut, but the company has managed to stand out through its iconic "Original Glazed" recipe. Its stores feature a unique factory-like open kitchen concept, where customers are drawn in by the "Hot Light" spectacle, signaling fresh doughnuts hot off the line that cascade through a sugary waterfall.
Krispy Kreme has translated that success into an innovative hub-and-spoke operating model, where its stores serve as production centers to supply retail partners, including grocery and convenience stores. Today, Krispy Kreme has 426 hubs internationally, servicing 17,982 global points of access (POAs).
Despite its devout worldwide following, Krispy Kreme may have become a victim of its success, now facing the pitfalls of a rapid expansion strategy and struggling to maintain consistent quality and operational efficiency. The latest trends underscore deeply rooted structural challenges.
In the first quarter, net revenue of $375.2 million fell by 15.3% year over year, alongside an adjusted net loss of $0.05 per share, reversing the profit of $0.07 in the same quarter last year. While some of that decline was due to the company's divestiture of its Insomnia Cookies group last year, more concerning was the 2.6% decline in organic revenue from U.S. operations. Sales per hub internationally are down 1% over the past year.
All this occurs even as global points of access increased by 21.2%, reflecting a distribution deal with McDonald's announced last year that now features Krispy Kreme doughnuts at 2,400 U.S. locations. Unfortunately, demand has been below expectations, with the added costs pressuring the companywide financial performance.
Management has acknowledged consumer spending softness and a shifting sales channel mix, emphasizing a need to refocus on core strengths. However, Krispy Kreme's strained balance sheet, with $993 million in debt and a net leverage ratio of 6.1, severely constrains its ability to tackle these issues quickly. The suspension of its regular dividend to prioritize debt reduction further undermines investor confidence.
Those skeptical of Krispy Kreme's near-term recovery prospects have ample reasons to sell or steer clear of the stock for now.
The case to buy or hold Krispy Kreme stock
When looking at Krispy Kreme as an investment, one silver lining to consider is that following the deep stock price sell-off, the bulk of its near-term challenges may have already been priced into the stock by the market. The stock is trading at a price-to-sales (P/S) ratio of just 0.3, which reflects a deeply discounted business that may still have some underlying value.
The company still needs to rectify its falling sales, but its outlook is backed by a storied brand and distinct market positioning. Amid a reset of expectations, signs of operating and financial progress over the next few quarters could be the catalyst needed for the stock to get back on track. Krispy Kreme's plan to improve its financial positioning by fixing its balance sheet and correcting its cost structure could ultimately pay off in creating value for shareholders.
Investors convinced that the company's weakness is only temporary might consider the latest sell-off as a buy-the-dip opportunity to hold for the long run.
Decision time: I'm avoiding this doughnut
Given the uncertainties surrounding Krispy Kreme's timetable for a sustained earnings recovery, caution is warranted. For existing shareholders, it seems too late to sell the stock, considering the possibility of a rebound, while the prudent move for new investors is to simply avoid it. There doesn't appear to be a quick turnaround in sight, and I predict the stock will remain volatile.
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Dan Victor 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.

Periodand min./max. price, $	Price change, %		Volatility, %		Volume, $
Periodand min./max. price, $	DNUT	Industry	DNUT	Industry	Volume, $
Yesterday 4.1 - 4.5	-2.44	50.29	35.78	1.65	60.05M
Week 3.1 - 5.7	35.46	50.01	5.89	3.43	831.21M
Month 2.6 - 5.7	62.97	40.08	18.38	8.61	990.22M
3 Months 2.5 - 5.7	0.32	27.84	22.91	19.63	1.58B
6 Months 2.5 - 9.6	-51.39	45.05	27.27	29.07	2.59B
Year 2.5 - 12.7	-61.26	36.77	64.11	41.89	3.94B
3 years 2.5 - 17.8	-70.71	160.65	92.01	80.53	10.60B
5 years —	—	93.96	121.63	108.60	—
All time 2.5 - 21.0	-73.86	70.58	—	—	15.08B

Krispy Kreme, Inc.

Price and volatility history

Risk ratios