Krispy Kreme (DNUT), the iconic doughnut chain, has seen significant volatility in its stock performance recently, garnering attention for both its business fundamentals and its emerging status as a "meme stock." As of July 23, 2025, DNUT is trading with considerable daily fluctuations, reflecting a dynamic and sometimes unpredictable market sentiment.

Recent Performance and Volatility

Krispy Kreme's stock has experienced a tumultuous period. While it saw a significant surge on July 22, 2025, with an increase of over 26%, this was largely attributed to a resurgence of "meme stock" activity, where retail investors target heavily shorted stocks. This type of movement is not necessarily driven by fundamental business developments.

The stock has been in a general downward trend since its IPO in July 2021, with its current price significantly below its 52-week high of $12.68. Year-to-date, the stock has seen a substantial decline. This recent "meme stock" rally, while offering short-term gains, highlights the stock's high volatility and sensitivity to market sentiment rather than consistent growth.

Financials and Business Developments

Krispy Kreme's recent financial performance has presented challenges. The company reported a negative earnings per share (EPS) and a decline in revenue year-over-year. The first-quarter report in May 2025 was described as "dismal," leading to a dividend cut and the termination of its partnership with McDonald's, which was deemed unprofitable for Krispy Kreme. The company has also seen its debt grow.

Despite these headwinds, Krispy Kreme is making strategic moves, including appointing a new CFO and focusing on expansion. The company's unique "hub-and-spoke" model and global expansion efforts remain key to its long-term strategy.

Analyst Consensus and Price Targets

Wall Street analysts hold a mixed, though leaning towards "Hold" or "Buy," view on DNUT. Based on recent analyst reports:

Consensus Rating: The average analyst rating is generally a "Hold" or "Moderate Buy," with some analysts maintaining "Buy" or "Strong Buy" ratings while others have downgraded to "Hold" or even "Sell."

Average Price Target: Analyst price targets vary widely. Some analysts project an average 12-month price target around $4.23 to $5.59, while others have a more optimistic average of $8.30. This wide range reflects the uncertainty surrounding the stock's future trajectory.

High and Low Targets: Individual price targets range from a low of $2.50 to a high of $14.00, indicating a significant divergence in expert opinions on Krispy Kreme's potential.

Recent analyst actions include B of A Securities maintaining a "Buy" rating with a $6.00 target, Morgan Stanley lowering its target to $2.50 with an "Overweight" rating, and Citigroup cutting its target to $3.60 with a "Neutral" rating.

The "Meme Stock" Factor

The recent surge in DNUT's stock price has largely been attributed to it becoming a target for retail investors involved in "meme stock" trading. These investors often focus on heavily shorted stocks, aiming to trigger a short squeeze. While this can lead to dramatic short-term gains, it also introduces substantial risk and volatility, making the stock less predictable based on traditional financial metrics. Investors should be aware that such movements are often speculative and not necessarily indicative of the company's underlying value or long-term prospects.

Krispy Kreme (DNUT) presents a complex picture for investors. While the company possesses a strong brand and a global growth strategy, its recent financial performance has been challenging, leading to concerns about profitability and debt. The emergence of DNUT as a "meme stock" has added a layer of speculative volatility, detaching its short-term price movements from fundamental analysis.

For potential investors, a thorough understanding of the company's financials, its long-term growth initiatives, and the inherent risks associated with its current "meme stock" status is crucial. The wide range of analyst price targets underscores the uncertainty surrounding Krispy Kreme's future, making it a stock that demands careful consideration and a high tolerance for risk.