Krispy Kreme, Inc.

Key Points
Krispy Kreme continues to expand its omni-channel reach through 14,000 fresh points of access across global markets.
McDonald's maintains a dominant global footprint with over 45,000 restaurants and a resilient franchise-led business model.
Which of these recognized dining brands offers the best path for your investment portfolio as we move through 2026?
Choosing between growth potential and established stability is a classic investor dilemma. Today, we compare Krispy Kreme (NASDAQ:DNUT) and McDonald's (NYSE:MCD) to determine which food giant is the better buy.
Krispy Kreme is working to transform from a traditional doughnut shop into a global sweet-treat brand with high accessibility. McDonald's remains the world's leading fast-food chain, leveraging immense scale to maintain its market share. Both companies are navigating shifting consumer habits and supply chain pressures in the current economic environment.
The case for Krispy Kreme
Krispy Kreme operates a Hub and Spoke model, producing fresh doughnuts at larger shops and delivering them daily to thousands of grocery and retail locations. The company manages a critical distribution partnership with BakeMark USA, which handles supplies for most of North America. This strategy aims to maximize the brand's presence without the overhead of building full-service kitchens in every neighborhood.
In its 2025 fiscal year (FY), revenue reached $1.5 billion, representing a decline of 8.6% compared to the prior year. The company reported a net loss of $515.8 million during this period. The net margin, which reveals the percentage of revenue remaining after all costs, was -33.9%, reflecting a challenging year for the brand's bottom line among food stocks.
As of its December 2025 balance sheet, the debt-to-equity ratio was 2.2x. This ratio measures total debt against shareholder equity, suggesting the company relies significantly on borrowed funds. The current ratio, which compares short-term assets to short-term liabilities, was 0.4x. Free cash flow, or the cash left after capital projects, was negative $64 million. Note that stock-based compensation (SBC) represented 37.9% of operating cash flow, which inflates reported cash generation since SBC is a non-cash expense added back in the cash flow statement.
The case for McDonald's
McDonald's serves millions of customers daily across 114 countries, primarily through its network of over 45,000 restaurants. The business model leans heavily on franchisees, who operate the vast majority of these locations and pay royalties to the parent company. While its 70-year partnership with The Coca-Cola Company remains iconic, the company has recently explored new beverage options to keep its menu relevant.
For FY 2025, the company generated revenue of $26.9 billion, a growth of 3.7% over the previous year. Net income for the period was $8.6 billion. The net margin remained robust at 31.9%, indicating the company's ability to retain a significant portion of its sales as profit even while facing higher ingredient and labor costs.
On its December 2025 balance sheet, the debt-to-equity ratio was -30.6x, indicating that total liabilities exceed shareholder equity. This is due to the company’s strategy of prioritizing returns to investors, using profits to fund stock buybacks, which artificially reduces shareholder equity. The current ratio, which shows the ability to cover immediate debts, was 1.0x. McDonald's generated significant free cash flow of $7.2 billion in FY 2025. This cash provides the company with ample resources to fund dividends, buy back shares, or invest in new digital ordering technologies.
Risk profile comparison
Krispy Kreme faces risks from cybersecurity vulnerabilities, following recent data breaches that led to legal settlements. The company also deals with supply chain concentration, as it depends on a single vendor for its glaze flavoring and a primary distributor for North America. High financial leverage and a dependency on third-party franchisees to execute its capital-light strategy add further complexity. Competition from other beverage and snack providers like Starbucks remains a constant pressure on its growth goals.
McDonald's is currently managing litigation risks, including class-action lawsuits regarding food safety and product claims. The company is also under scrutiny for labor practices and regulatory compliance involving teenage employees in certain markets. Potential volatility in its long-term supply alliances, particularly if foundational partnerships shift, could disrupt operations. Furthermore, the company faces intense competition from rivals such as Restaurant Brands International, who are aggressively pursuing value-oriented customers.
Valuation comparison
McDonald's appears more attractively valued on an earnings basis, while Krispy Kreme trades at a much lower multiple of its annual sales.
Forward P/E
35.8x
20.7x
288.6x
P/S ratio
0.4x
7.1x
n/a
Sector benchmark uses the SPDR XLP sector ETF. Valuation metrics sourced from Financial Modeling Prep (FMP) and may differ from other data providers.
Which stock would I buy in 2026?
Digging into Krispy Kreme and McDonald's reveals the better stock to buy is the latter. Krispy Kreme may look more attractive from a valuation perspective, given its much lower price-to-sales ratio, but there’s a reason why its sales multiple is so low.
Krispy Kreme had a partnership with McDonald's that ended in 2025, driving the donut company’s stock price down. Moreover, it amassed huge debt on its balance sheet. It exited its fiscal first quarter, ended March 29, with nearly $900 million in debt.
Krispy Kreme’s sales are in decline, since it decided to close unprofitable stores. This strategy helped it reduce costs, but it still resulted in a fiscal Q1 net loss of $22.7 million. The company is in turnaround mode as it works to strengthen its financial health.
McDonald's is a large, profitable business with rising sales. In the first quarter, it posted 9% year-over-year revenue growth to $6.5 billion. Its Q1 net income increased 6% year over year to nearly $2 billion. Given that McDonald's is the stronger operation, it’s a better investment than Krispy Kreme right now.
Should you buy stock 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 $396,542!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,299,961!*
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*Stock Advisor returns as of July 15, 2026.
Robert Izquierdo has positions in Coca-Cola and Starbucks. The Motley Fool has positions in and recommends Starbucks. The Motley Fool recommends Restaurant Brands International and recommends the following options: long January 2028 $320 calls on McDonald's and short January 2028 $340 calls on McDonald's. 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 vs. McDonald's: Which Restaurant Stock Is a Better Buy in 2026?

Key Points
CAVA Group continues to see rapid growth and positive net income as it scales its Mediterranean fast-casual concept across the United States.
Krispy Kreme is executing a strategic pivot toward a capital-light model by expanding third-party retail access points and refranchising shops.
Which stock offers the better balance of growth potential and valuation for your portfolio in 2026?
Investors are currently weighing the high-growth trajectory of a Mediterranean grill against the global turnaround of a doughnut icon. Choosing between CAVA Group (NYSE:CAVA) and Krispy Kreme (NASDAQ:DNUT) requires deciding between premium pricing and recovery potential.
CAVA has established itself as a leader in healthy, customizable meals, while Krispy Kreme is focused on maximizing its "points of access" through grocery and digital partnerships. Both companies are fighting for consumer dollars in a crowded market, making their distinct financial paths a key focus for long-term investors.
The case for CAVA
CAVA Group is a Mediterranean fast-casual restaurant brand that focuses on serving healthful food and bold flavors to a growing customer base. As it expands its footprint among retail stocks in the dining space, the company operates roughly 459 locations across 26 states. It maintains a vertically integrated supply chain with over 50 grower and rancher partners, including single-source suppliers for ingredients such as olive oil.
In FY 2025, revenue reached nearly $1.2 billion, up approximately 22.4% from the prior year. This helped generate a net income of about $63.7 million, though the net margin contracted to roughly 5.4% from the previous year. The company relies on its own restaurants and third-party delivery platforms to drive these sales volumes.
As of its December 2025 balance sheet, the debt-to-equity ratio was roughly 0.6x, indicating the extent to which debt is used relative to shareholders’ equity. The current ratio stands at approximately 2.7x, indicating a strong ability to cover short-term financial obligations with current assets. Free cash flow for the period was nearly $26.1 million, which is the cash a business generates after paying for all its operations and equipment costs.
The case for Krispy Kreme
Krispy Kreme operates as a global doughnut and coffee brand with more than 14,000 fresh points of access across 35 countries. The company uses an omni-channel approach, selling through its own shops, digital delivery, and major retail partners like grocery and convenience stores. It relies on an exclusive distribution partnership with BakeMark USA for most of its ingredients and supplies in North America.
In FY 2025, revenue declined by about 8.6% to approximately $1.5 billion compared to the previous year. The company reported a significant net loss of nearly $515.8 million, resulting in a negative net margin of roughly 33.9%. This reflects the ongoing costs associated with its business model transition and strategic refranchising efforts.
As of its December 2025 balance sheet, the debt-to-equity ratio was approximately 2.2x, suggesting greater reliance on debt financing. The current ratio was nearly 0.4x, meaning current liabilities exceed current assets, and free cash flow was negative at approximately $64.0 million. Note that stock-based compensation accounted for roughly 37.9% of operating cash flow, thereby inflating reported cash generation, since SBC is a non-cash expense added back in the cash flow statement.
Risk profile comparison
CAVA faces significant risks from its supply chain concentration, as it relies on a limited number of suppliers for critical ingredients, which could lead to disruptions. The company must also execute perfectly on its growth plans, as opening new locations involves construction delays and the risk of cannibalizing sales from existing sites. Additionally, any food safety incident at its restaurants or through competitors like Chipotle Mexican Grill can damage consumer trust across the entire category.
Krispy Kreme is navigating risks associated with its high debt load and the execution of its complex turnaround plan. The company depends heavily on single-source suppliers for its proprietary glaze flavoring and equipment, creating a vulnerability if production fails. It also faces intense competition from larger players like McDonald's and Starbucks, while its shift to a franchised model reduces direct control over shop quality and safety standards.
Valuation comparison
Krispy Kreme offers a lower sales multiple, but CAVA is the only one of the two currently generating positive net income for its shareholders.
Forward P/E
140.0x
61.4x
28.6x
P/S ratio
7.7x
0.4x
n/a
Sector benchmark uses the SPDR XLY sector ETF.
Valuation metrics sourced from Financial Modeling Prep (FMP) and may differ from other data providers.
Which stock would I buy in 2026?
Choosing between Cava and Krispy Kreme is an exercise in finding stocks that match your investing strategy. While both companies offer interesting potential, they do so for very different reasons. Cava, for example, maintains a lofty valuation thanks to its strong sales growth (up 32% in Q1) and leadership in its unique, better-for-you fast-casual niche. On the other hand, Krispy Kreme is deeply discounted, but heavily indebted and in the midst of a major turnaround.
If you like a good contrarian investment, Krispy Kreme may be a better bet, provided its turnaround gains traction. If you prefer a growth stock, Cava is the hands-down winner. Personally, I think Cava is the far superior investment option. However, the stock still has plenty of growing to do to live up to its premium valuation. That said, Cava just opened 20 new locations in Q1, bringing its footprint to 459 stores, highlighting how heavily it is leaning into its growth plans.
Meanwhile, Krispy Kreme is continuing its refranchising strategy to become a more capital-light business. The company now expects to generate $15 million in free cash flow in 2026, but hasn’t generated meaningful, consistent profits or cash flow over the last five years. I’d personally rather give Krispy Kreme some time and see the turnaround take hold before buying.
Should you buy stock in Cava Group right now?
Before you buy stock in Cava Group, 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 Cava Group 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 $387,428!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,221,398!*
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Josh Kohn-Lindquist has positions in Cava Group and Chipotle Mexican Grill. The Motley Fool has positions in and recommends Cava Group, Chipotle Mexican Grill, and Starbucks. The Motley Fool recommends the following options: long January 2028 $320 calls on McDonald's, short January 2028 $340 calls on McDonald's, and short June 2026 $36 calls on Chipotle Mexican Grill. 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.

CAVA vs. Krispy Kreme: Which Consumer Stock Is a Better Buy in 2026?

(RTTNews) - Krispy Kreme, Inc. (DNUT) on Monday unveiled its Summer Seasonal Collection, featuring new doughnuts and frozen lemonade drinks available for a limited time at participating U.S. locations starting June 16.
The summer lineup includes the new Original Glazed Strawberry Cake Doughnut and Lemon Bar Doughnut, along with returning favorites Key Lime Pie Doughnut and Cannoli Inspired Doughnut.
In addition to its classic Frozen Lemonade and Strawberry Chillers, Krispy Kreme is also introducing two limited-time drinks for the summer season: Watermelon Infused Lemonade Chiller and Mango Infused Lemonade Chiller.
The company said the Summer Seasonal Collection will replace its Spring Seasonal Collection, which included HERSHEY'S Double Chocolate, Strawberries and Kreme, Banana Pudding and Original Glazed Blueberry Cake doughnuts.
Krispy Kreme shares closed at $4.31 on Friday, up 2.62%.
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 Launches Summer Seasonal Doughnuts, Lemonade Chillers

In trading on Wednesday, grocery & drug stores shares were relative leaders, up on the day by about 3.1%. Leading the group were shares of Casey's General Stores, up about 15.5% and shares of Krispy Kreme up about 5.6% on the day.
Also showing relative strength are oil & gas exploration & production shares, up on the day by about 3% as a group, led by W & T Offshore, trading up by about 10.6% and HighPeak Energy, trading up by about 8.6% on Wednesday.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Wednesday Sector Leaders: Grocery & Drug Stores, Oil & Gas Exploration & Production Stocks

Bargain hunters are wise to pay careful attention to insider buying, because although there are many various reasons for an insider to sell a stock, presumably the only reason they would use their hard-earned cash to make a purchase, is that they expect to make money. Today we look at two noteworthy recent insider buys.
On Wednesday, Globant's Director, Alejandro Nicolas Aguzin, made a $971,838 buy of GLOB, purchasing 25,000 shares at a cost of $38.87 a piece. So far Aguzin is in the green, up about 3.4% on their purchase based on today's trading high of $40.21. Globant is trading up about 0.6% on the day Friday. This purchase marks the first one filed by Aguzin in the past year.
And on Thursday, Director Bernardo Hees bought $768,718 worth of Krispy Kreme, buying 225,077 shares at a cost of $3.42 a piece. Krispy Kreme is trading up about 3.4% on the day Friday. So far Hees is in the green, up about 7.7% on their purchase based on today's trading high of $3.68.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Friday 5/29 Insider Buying Report: GLOB, DNUT

Colgate-Palmolive Company CL is striving for a balance between volume and pricing, rather than relying solely on price increases to drive revenues. In the first quarter of fiscal 2026, the company highlighted that it witnessed improved volume performance, particularly within the Asia Pacific region. Excluding the impact from the private label pet food exit, the company achieved both volume and pricing growth across all four categories and in four of its five operating divisions, reflecting broad-based business momentum.
The company stated that industry-wide category volumes remain relatively sluggish globally, making the recent acceleration in volume growth particularly encouraging. Management highlighted that volume improvement compared with the fourth quarter of fiscal 2025 was broad-based, with growth observed across nearly all divisions and categories in the first quarter of fiscal 2026. This trend was strongest in emerging markets, which the company views as a primary growth engine. Management noted that the Asia Pacific region was a significant contributor to accelerating growth trends, while Latin America continued delivering solid volume performance and market share gains.
However, pricing remains a critical lever navigating the inflationary environment and maintaining pricing power remains a key priority across the business. Management highlighted that pricing actions continue to be important for protecting margin dollars and supporting category investment. The company also emphasized that future pricing initiatives will increasingly be supported by innovation and strong value propositions across multiple price points. Management expects innovation-led pricing opportunities to continue through the remainder of the year as it focuses on balancing pricing strategy with consumer value.
Overall, Colgate appears increasingly balanced between pricing and volume growth, with emerging market momentum, innovation-led demand and pricing discipline supporting sustainable revenue growth and margin protection.
Zacks Rundown for CL
Colgate’s shares have gained 11.7% in the past six months against the industry’s decline of 4.5%.
Image Source: Zacks Investment Research
From a valuation standpoint, CL trades at a forward price-to-earnings ratio of 23X, higher than the industry’s average of 17.68X. CL currently carries a Zacks Rank #4 (Sell).
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for CL’s 2026 and 2027 earnings implies year-over-year growth of 3.5% and 5.6%, respectively.
Image Source: Zacks Investment Research
Stocks to Consider
Some better-ranked stocks have been discussed below:
ARKO Corp. ARKO operates a chain of convenience stores in the United States. ARKO currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for ARKO's current fiscal-year sales implies a decline of 2.8%, while the same for current fiscal-year earnings implies growth of 93.3% from the year-ago reported figures. ARKO delivered a trailing four-quarter earnings surprise of 43.2%, on average.
Kenvue Inc. KVUE operates as a consumer health company in the United States, the rest of North America, Europe, the Middle East, Africa, the Asia-Pacific and Latin America. KVUE currently sports a Zacks Rank #1.
The Zacks Consensus Estimate for KVUE's current fiscal-year sales and earnings implies growth of 3.2% and 7.4%, respectively, from the year-ago actuals. KVUE delivered a trailing four-quarter negative earnings surprise of 12.1%, on average.
Krispy Kreme, Inc. DNUT produces doughnuts in the United States, the United Kingdom, Ireland, Australia, New Zealand, Mexico, Canada, Japan, and internationally. At present, DNUT Carries a Zacks Rank of 2 (Buy).
The Zacks Consensus Estimate for DNUT’s current fiscal-year sales implies a decline of 14%, and the same for earnings implies growth of 80% from the year-ago reported figures. DNUT delivered a trailing four-quarter negative earnings surprise of 6.3%, on average.
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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.

Is Colgate Too Dependent on Pricing Actions for Revenue Growth?

Key Points
Krispy Kreme maintains a vast global network with nearly 18,000 points of access across 40 countries.
Domino's Pizza dominates the delivery market with a footprint of more than 22,000 stores worldwide.
Which of these famous food brands is the better buy for your portfolio in 2026?
Investors choosing between sweet and savory must decide if a high-growth doughnut model or a stable pizza powerhouse offers better value. Deciding between Krispy Kreme (NASDAQ:DNUT) and Domino's Pizza (NASDAQ:DPZ) requires a look at their different financial trajectories.
Krispy Kreme uses an omnichannel strategy to distribute treats through shops and retail cabinets. Domino's relies on a massive logistics and delivery network to maintain its market lead. Both companies occupy unique niches within the quick-service restaurant world, but their balance sheets tell very different stories for the year ahead.
The case for Krispy Kreme
Krispy Kreme generates revenue by selling fresh doughnuts through its owned shops, digital platforms, and Delivered Fresh Daily (DFD) cabinets located in grocery stores. The company operates in 40 countries and reported roughly 17,982 points of access as of early 2025. This business model relies on a hub-and-spoke system where large production facilities supply various retail locations. The company remains a popular name among food stocks because of its global reach. No single customer accounted for more than 10% of total revenue in recent years, reducing the risk of reliance on a single retail partner.
In FY 2025, the company reported revenue of nearly $1.5 billion, down approximately 8.6% from the prior year. This decline contributed to a net loss of roughly $515.8 million for the period. Consequently, the net margin was nearly -33.9%, a significant shift from the narrow positive net margin of 0.2% seen in the previous fiscal year. These figures highlight a challenging period for the company as it navigates structural changes and shifting consumer demand.
As of its December 2025 balance sheet, the debt-to-equity ratio is approximately 2.2x. This ratio, which compares total debt to shareholder equity, suggests the company uses significant leverage to fund its operations. The current ratio is roughly 0.4x, indicating that short-term assets may not fully cover short-term liabilities. Free cash flow, which is the cash generated from operations minus capital expenditures, was nearly negative $64.0 million for the fiscal year. Note that stock-based compensation accounted for roughly 37.9% of operating cash flow, thereby inflating reported cash generation, since SBC is a non-cash expense added back in the cash flow statement.
The case for Domino's Pizza
Domino's Pizza operates a global network focused on pizza delivery and carryout services. The company managed approximately 22,142 stores as of late 2025 and serves customers in more than 90 international markets. Its business includes U.S. store operations, international franchise segments, and a robust supply chain service that provides ingredients to its franchisees. The company has explicitly stated that its business does not depend on any single retail customer or small group of franchisees. This diversified revenue stream from thousands of independent operators provides a level of stability to the overall brand.
For FY 2025, revenue reached nearly $4.9 billion, which is a 5.0% increase over the previous fiscal year. This growth helped the company achieve a net income of approximately $601.7 million. The net margin for the period was roughly 12.2%, remaining relatively consistent with the 12.4% net margin reported in 2024. These results suggest that the company has successfully managed its costs while continuing to expand its sales footprint across global markets.
Regarding its December 2025 balance sheet, the debt-to-equity ratio is approximately -1.3x. This value indicates that total liabilities exceed shareholder equity. The current ratio is roughly 1.7x, which measures a company's ability to cover its short-term debts with its short-term assets. Free cash flow was approximately $671.5 million for the fiscal year. This level of cash generation provides the company with flexibility for debt management or returning value to shareholders.
Risk profile comparison
Krispy Kreme faces intense competition from various regional and national food service players with low barriers to entry. The company also deals with supply chain concentration, relying on a single vendor for its glaze flavoring and a primary distributor in North America. Cybersecurity remains a concern, as previous incidents have caused operational disruptions and financial losses for the brand. Volatility in the costs of flour, sugar, and shortening also poses a risk to profitability if the company cannot pass these costs to consumers.
Domino's Pizza competes in a crowded market against major chains like Yum! Brands and Papa John's International. The rise of third-party delivery aggregators also presents a threat to its historical dominance in the delivery space. The company is vulnerable to labor cost increases and fluctuations in commodity prices, particularly cheese. Furthermore, its heavy reliance on technology for over 85% of U.S. sales means any IT failure or cyberattack could significantly harm daily operations and customer trust.
Valuation comparison
Domino's Pizza trades at a lower Forward P/E relative to earnings estimates, while Krispy Kreme maintains a much lower P/S ratio.
Forward P/E
58.7x
16.2x
25.5x
P/S ratio
0.4x
2.1x
n/a
Sector benchmark uses the SPDR XLP sector ETF.
Valuation metrics sourced from Financial Modeling Prep (FMP) and may differ from other data providers.
Which stock would I buy in 2026?
Domino’s and Krispy Kreme may not be great for your diet, but are they good for your investment portfolio?
Krispy Kreme has been through a challenging period with declining revenue and a negative net margin through 2025. It is financing operations through debt, which is not necessarily a bad thing, but with a free cash flow of negative $64 million, it looks like a risky proposition. However, it’s in the midst of a turnaround effort through restructuring, which management hopes will improve profitability.
Domino’s, on the other hand, has reported an increase in revenue year over year for its fiscal 2025. Its free cash flow, unlike Krispy Kreme’s, is positive: $671 million for 2025. Domino’s still carries significant debt, but its profitability and consistency make it a better candidate for long-term investors.
Contrarian investors may find Krispy Kreme worth considering. After all, it’s still a very recognizable name, and who doesn’t like donuts? It still has a globally recognizable brand and a broad distribution network. I would choose to take a slice of Domino’s for now, and wait to see how Krispy Kreme executes on its turnaround strategy.
Should you buy stock in Domino's Pizza right now?
Before you buy stock in Domino's Pizza, 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 Domino's Pizza 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 $477,813!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,320,088!*
Now, it’s worth noting Stock Advisor’s total average return is 986% — a market-crushing outperformance compared to 208% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors.
*Stock Advisor returns as of May 26, 2026.
Pamela Kock has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Domino's Pizza. 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 vs. Domino's Pizza: Which Consumer Goods Stock Is a Better Buy in 2026?

For Immediate Release
Chicago, IL – May 22, 2026 – Today, Zacks Equity Research discusses BJ's Wholesale Club Holdings, Inc. BJ, Ollie's Bargain Outlet Holdings, Inc. OLLI, Grocery Outlet Holding Corp. GO and Krispy Kreme, Inc. DNUT.
Industry: Consumer Staples
Link: https://www.zacks.com/commentary/2924800/4-consumer-staples-stocks-worth-watching-amid-market-challenges
The Consumer Products-Staples industry is navigating a challenging demand environment as inflationary pressures and elevated living costs continue to weigh on consumer spending. Value-conscious shoppers are prioritizing essentials, trading down to lower-priced alternatives and reducing discretionary purchases, creating softer volume trends across several categories.
At the same time, industry players are managing elevated input, labor and transportation costs alongside rising SG&A expenses and ongoing digital investments. Companies such as BJ's Wholesale Club Holdings, Inc., Ollie's Bargain Outlet Holdings, Inc., Grocery Outlet Holding Corp. and Krispy Kreme, Inc. are focusing on operational efficiencies, value-driven offerings and strategic expansion initiatives to support profitability and long-term growth.
About the Industry
The Zacks Consumer Products-Staples industry includes companies that manufacture, market and distribute a broad range of everyday household and personal-use items. These offerings span personal care products, cleaning tools, stationery, bed and bath essentials and general household goods such as small appliances, cutlery and food-storage solutions.
Some players also participate in categories like batteries, lighting, pet food, treats and related supplies. Their products reach consumers through supermarkets, drug and grocery chains, department stores, mass merchandisers, warehouse clubs and other retail partners, while a growing share is now sold through digital channels. Several companies also supply items to perfume, cosmetics and personal-care manufacturers, as well as to third-party distributors.
Trends Shaping the Future of the Consumer Products-Staples Industry
Rising Cost Pressures in a Challenging Operating Environment: The consumer goods industry continues to face pressure from elevated costs across raw materials, labor and transportation. These higher input costs weigh on profit margins, particularly when companies are unable to fully offset them through pricing actions. Adding to the challenge are rising SG&A expenses and continued investments in digital transformation, technology and marketing initiatives to support long-term growth.
Many companies also remain exposed to supply-chain disruptions, which can lead to shipment delays and elevated freight costs, further pressuring margins. To protect profitability, industry players are increasingly undertaking restructuring measures and cost-optimization initiatives aimed at improving efficiency and strengthening operational resilience.
Heightened Consumer Spending Volatility: The Consumer Products-Staples industry is navigating elevated spending volatility amid an uncertain macroeconomic backdrop. Changing consumer behavior, particularly among lower-income households, is being influenced by persistent inflationary pressures, rising living costs and lower savings levels.
These financial constraints continue to pressure purchasing power and weigh on discretionary spending patterns across the sector. Given the industry's significant exposure to middle and lower-income consumers, companies remain vulnerable to economic headwinds that could lead to softer demand, weaker sales volumes and slower growth momentum.
Exposure to Currency Fluctuations: Global consumer staples companies remain highly sensitive to foreign-exchange volatility, with a stronger U.S. dollar posing a meaningful headwind. Currency fluctuations can reduce the value of international revenues when translated into U.S. dollars, negatively impacting reported sales and earnings performance. In such an environment, companies are often forced to balance pricing actions in overseas markets against the risk of margin pressure and reduced competitiveness.
Maximizing Revenues Through Strategic Optimization: Companies are actively pursuing strategic levers to strengthen their revenue base and long-term positioning. Investments in e-commerce and digital capabilities are expanding rapidly, supporting convenience-driven demand and higher-margin direct-to-consumer opportunities.
At the same time, innovation efforts remain focused on healthier product offerings, sustainable packaging and technology-enabled consumer engagement. Companies are also actively optimizing portfolios through acquisitions, divestitures and brand rationalization strategies, enabling more efficient capital allocation toward faster-growing and higher-return categories. Collectively, these initiatives are helping consumer staples companies remain competitive and drive incremental growth in an increasingly evolving marketplace.
Zacks Industry Rank Indicates Dull Prospects
The Zacks Consumer Products-Staples industry is housed within the broader Zacks Consumer Staples sector. The industry currently carries a Zacks Industry Rank #177, which places it in the bottom 27% of more than 244 Zacks industries.
The group's Zacks Industry Rank, which is the average of the Zacks Rank of all member stocks, indicates dim near-term prospects. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than two to one.
The industry's position in the bottom 50% of the Zacks-ranked industries is a result of a negative earnings outlook for the constituent companies in aggregate. Looking at the aggregate earnings estimate revisions, it appears that analysts are gradually becoming less confident about this group's earnings growth potential. Since the beginning of March 2026, the consensus estimate for the industry's current financial-year earnings has decreased 0.8%.
Let's look at the industry's performance and current valuation.
Industry vs. Broader Market
The Zacks Consumer Products-Staples industry has lagged the S&P 500 index and the broader Zacks Consumer Staples sector over the past six months.
The industry has lost 5% over this period against the broader sector's growth of 5.3%. Meanwhile, the S&P 500 index has advanced 12.4%.
Industry's Current Valuation
On the basis of forward 12-month price-to-earnings (P/E), commonly used for valuing consumer staple stocks, the industry is currently trading at 17.46X compared with the S&P 500's 21.85X and the sector's 16.91X.
Over the past five years, the industry has traded as high as 23.39X, as low as 17.46X and at the median of 21.21X.
4 Consumer Product Stocks to Keep a Close Eye On
Krispy Kreme: The company continues to strengthen its market presence through a differentiated brand portfolio, broad fresh-delivery network and expanding global footprint. This Zacks Rank #2 (Buy) company remains focused on enhancing consumer engagement through innovation, digital initiatives and strategic partnerships that improve product accessibility across multiple retail channels.
Its asset-light franchise model, combined with disciplined cost management and ongoing operational efficiencies, supports long-term scalability and profitability potential. In addition, Krispy Kreme continues to benefit from strong brand recognition, seasonal product launches and loyalty-driven engagement, reinforcing its position within the sweet treats and quick-service retail landscape. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
The Zacks Consensus Estimate for Krispy Kreme's current fiscal-year loss per share has remained unchanged at 2 cents in the past seven days. The projection indicates growth of 80% from the year-ago period's level. DNUT's shares have fallen 11% in the past six months.
BJ's Wholesale Club: A leading operator of membership warehouse clubs, BJ's Wholesale Club currently carries a Zacks Rank #3 (Hold). The company continues to exhibit steady momentum, supported by its strategic emphasis on membership expansion and digital transformation initiatives. BJ remains focused on strengthening its omnichannel ecosystem while reinforcing the value-focused membership model.
These efforts have supported consistent growth in member acquisition and retention, contributing to stable membership fee income. By offering convenient solutions such as same-day delivery, buy online, pick up in club and ExpressPay, the company delivers a seamless and engaging shopping experience. In addition, BJ's Wholesale Club has been methodically expanding its physical footprint, targeting attractive growth markets and underserved regions to support long-term scalability.
The Zacks Consensus Estimate for BJ's Wholesale Club's current fiscal-year earnings per share (EPS) has decreased from $4.52 to $4.50 in the past seven days. The projection indicates growth of 2.3% from the year-ago period's level. BJ's shares have gained 4.1% in the past six months.
Ollie's Bargain: Ollie's continues to strengthen its competitive standing through a disciplined, value-focused operating model backed by effective merchandising and prudent expense management. This Zacks Rank #3 company benefits from its loyalty platform, Ollie's Army, which serves as a key strategic lever by enhancing customer engagement and encouraging repeat visits, reinforcing its position in the closeout retail space. Consistent access to compelling brand-name deals, combined with ongoing investments in supply-chain capabilities and geographic expansion, supports operational efficiency and long-term growth.
The Zacks Consensus Estimate for Ollie's current fiscal-year EPS has remained unchanged at $4.48 in the past seven days. This indicates growth of 16.1% year over year. OLLI has seen its shares declined 33.8% in the past six months.
Grocery Outlet: This Zacks Rank #3 company's differentiated value model, built on opportunistic sourcing and the Independent Operator structure, gives it distinct competitive positioning in discount retail. Grocery Outlet's dynamic assortment of brand-name bargains, complemented by targeted merchandising initiatives, strengthens customer engagement and reinforces its value leadership. Strategic initiatives — from disciplined store expansion to store refresh efforts — are aimed at enhancing productivity, broadening market reach and supporting long-term profitability.
The Zacks Consensus Estimate for Grocery Outlet's current fiscal-year EPS has remained unchanged at 51 cents over the past seven days. The projection indicates a decline of 32.9% from the year-ago period's figure. GO's shares have declined 23.1% in the past six months.
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Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.
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Zacks Industry Outlook Highlights BJ's Wholesale Club, Ollie's Bargain Outlet, Grocery Outlet and Krispy Kreme

Kimberly-Clark Corporation’s KMB Powering Care growth engine continues to support strong base business momentum across the portfolio. At its first-quarter 2026earnings call management highlighted the company’s focus on delivering differentiated, science-backed innovation across multiple price tiers within its good, better and best product offerings, helping strengthen competitiveness and support long-term growth.
KMB’s innovation continued to support solid organic sales growth in the first quarter of 2026, with volume plus mix growth increasing to 3%. Management noted that this performance builds on two consecutive years of broad-based volume plus mix growth across the business, with ongoing market share gains within its key focus categories, including Baby Care, Women’s Health and Active Aging.
Pricing philosophy remains focused on maintaining pricing net of costs neutral over time as part of its integrated margin management strategy under the Powering Care plan. Kimberly-Clark highlighted several key drivers supporting the strategy, including revenue growth management initiatives and a strong pipeline of productivity programs. The company has already delivered two consecutive years of 6% gross productivity improvement and reported another 6% productivity gain in the first quarter of fiscal 2026. Kimberly-Clark also expects to maintain approximately 6% gross productivity improvement for the full year.
Furthermore, the program is on track to meet or exceed $200 million in savings. As a result, Kimberly-Clark forecasts that both gross and operating profit margins will expand by 70 to 80 basis points for the full year. The company also said that its previously announced $2 billion investment in the North American supply chain is progressing as planned.
Overall, Kimberly-Clark’s Powering Care strategy appears well-positioned to strengthen growth through innovation, productivity gains, margin expansion and supply chain investments, supporting long-term competitiveness and profitability.
The Zacks Rundown for KMB
Shares of KMB have lost 12.7% in the past three months compared with the industry’s decline of 14.6%.
Image Source: Zacks Investment Research
From a valuation standpoint, KMB trades at a forward price-to-earnings ratio of 12.87, lower than the industry’s average of 17.55. KMB currently carries a Zacks Rank #3 (Hold).
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for KMB’s current fiscal year earnings implies a year-over-year decline of 0.7%, and the same for next fiscal year earnings implies year-over-year growth of 0.4%.
Image Source: Zacks Investment Research
Stocks to Consider
Some better-ranked stocks have been discussed below:
Krispy Kreme, Inc. DNUT produces doughnuts in the United States, the United Kingdom, Ireland, Australia, New Zealand, Mexico, Canada, Japan, and internationally. At present, DNUT carries a Zacks Rank of 2 (Buy). You can see the complete list of today’s Zacks #1 (Strong Buy) Rank stocks here.
The Zacks Consensus Estimate for DNUT’s current fiscal-year sales implies a decline of 14%, and the same for earnings implies growth of 80% from the year-ago reported figures. DNUT delivered a trailing four-quarter negative earnings surprise of 6.3%, on average.
ARKO Corp. ARKO operates a chain of convenience stores in the United States. ARKO currently carries a Zacks Rank #2.
The Zacks Consensus Estimate for ARKO's current fiscal-year sales implies a decline of 2.8%, while the same for current fiscal-year earnings implies growth of 93.3% from the year-ago reported figures. ARKO delivered a trailing four-quarter earnings surprise of 43.2%, on average.
Ryohin Keikaku Co., Ltd. RYKKY engages in the retail of household goods and food items in Japan and internationally. RYKKY currently carries a Zacks Rank #2.
The Zacks Consensus Estimate for RYKKY's current fiscal-year sales and earnings implies growth of 5.6% and 5.6%, respectively, from the year-ago actuals.
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Kimberly-Clark's Powering Care Plan: Can It Strengthen Growth?

Colgate-Palmolive Company’s CL innovation strategy continues to play a central role in strengthening its market position and driving growth across categories and geographies. The company has been accelerating investments in innovation, digital capabilities, AI, analytics and omnichannel demand generation to improve product quality, enhance consumer engagement and support premiumization. Management highlighted that innovation-led pricing and science-based product differentiation are helping the company maintain strong brand equity despite a sluggish global consumption environment and rising inflationary pressures.
The impact of these efforts was visible in first-quarter 2026 results. Total company organic sales increased 2.9%, supported by 1.1% volume growth and 2.2% pricing growth. Asia Pacific organic sales rose 5.6%, while Latin America organic sales increased 5.4%, reflecting strong execution of innovation and premium product initiatives. Hill’s Pet Nutrition also delivered solid organic sales growth of 2.1%, despite the negative impact from the private-label pet food exit. The company continued to maintain leadership in global toothpaste and manual toothbrush categories with year-to-date market shares of 41.1% and 32.6%, respectively.
Management particularly highlighted the success of innovation initiatives in China, Latin America and Hill’s Pet Nutrition. In Asia, dual-tube technology and premium oral care launches are gaining traction, while Latin America is benefiting from premium innovation, adjacency expansion and improved omnichannel execution. Hill’s continues to gain market share through science-based innovation and therapeutic offerings such as Prescription Diet and Science Diet, which remain strong growth drivers across premium pet nutrition segments. The company also emphasized that innovation across multiple price tiers is helping it balance affordability with premiumization opportunities.
Ultimately, Colgate’s ability to balance pricing and volume will hinge on execution rather than macro relief. Management emphasized that pricing remains necessary to offset costs and fund investment, but acknowledged that long-term growth requires volume to recover, particularly in mature markets. With a stronger innovation pipeline, expanding premiumization and more data-driven pricing and promotional tools, Colgate believes it can navigate this soft market without eroding brand equity. The path forward may be uneven, but the company’s disciplined approach suggests it is prioritizing sustainable value creation over short-term volume wins.
CL’s Zacks Rank & Share Price Performance
Shares of this Zacks Rank #3 (Hold) company have gained 12.8% in the past six months, outperforming both the industry’s decline of 3.4% and the broader Consumer Staples sector's growth of 6.3%.
CL Stock's Six-Month Performance
Image Source: Zacks Investment Research
Is CL a Value Play Stock?
Colgate currently trades at a forward 12-month P/E ratio of 22.72X, which is higher than the industry average of 17.49X and the sector average of 16.81X. This valuation positions the stock at a premium relative to both its sector and industry peers, suggesting that investors may be pricing in stronger growth prospects, brand strength or operational efficiency compared with competitors.
CL P/E Ratio (Forward 12 Months)
Image Source: Zacks Investment Research
Stocks to Consider
ARKO Corp. ARKO operates a chain of convenience stores in the United States. ARKO currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for ARKO's current fiscal-year sales implies a decline of 4.9%, while the same for current fiscal-year earnings implies growth of 93.3% from the year-ago reported figures. ARKO delivered a trailing four-quarter earnings surprise of 43.2%, on average.
Krispy Kreme, Inc. DNUT produces doughnuts in the United States, the United Kingdom, Ireland, Australia, New Zealand, Mexico, Canada, Japan and internationally. At present, DNUT has a Zacks Rank of 2 (Buy).
The Zacks Consensus Estimate for DNUT’s current fiscal-year sales implies a decline of 14%, and the same for earnings implies growth of 80% from the year-ago reported figures. DNUT delivered a trailing negative four-quarter earnings surprise of 6.3%, on average.
B&G Foods, Inc. BGS manufactures, sells and distributes a portfolio of shelf-stable and frozen foods and household products. BGS currently carries a Zacks Rank #2.
The Zacks Consensus Estimate for B&G Foods’ current fiscal-year earnings implies growth of 5.9% from the year-ago actuals. BGS delivered a trailing four-quarter negative earnings surprise of 1.6%, on average.
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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.

Krispy Kreme, Inc.

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