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McDonald's to Test ‘Dirty Sodas' and Flavored Cold Brews to Cash In on Drinks Craze

McDonald's to Test ‘Dirty Sodas' and Flavored Cold Brews to Cash In on Drinks Craze

McDonald's MCD -1.22%decrease; red down pointing triangle wants to put more of its business on ice.
The chain behind the Big Mac and Chicken McNuggets is gearing up to offer Creamy Vanilla Cold Brews, Popping Tropic Refreshers and other brightly colored, iced drinks.
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Krispy Kreme's (DNUT) Meme Rally Fades After Brief Sugar Rush
Krispy Kreme's (DNUT) Meme Rally Fades After Brief Sugar Rush

Business Insider

time15 hours ago

  • Business Insider

Krispy Kreme's (DNUT) Meme Rally Fades After Brief Sugar Rush

Krispy Kreme's (DNUT) stock has been on a sweet run, surging over 30% in the past month—including a remarkable 25% jump just last Wednesday. The rally caught the eye of meme stock traders, but the momentum has since cooled as investors take a closer look at the company's high debt levels, negative returns, and growing operational hurdles. As recent price action shows, an almighty spike has been followed by an almighty slump. Elevate Your Investing Strategy: Take advantage of TipRanks Premium at 50% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence. Given the recent volatility and underlying concerns, I'm choosing to stay Neutral on the sidelines for now. I'd prefer to see stronger signs of sustainable profitability before considering taking a bite of DNUT stock. An Empire Built on Glaze Krispy Kreme is a specialty doughnut company known for its Original Glazed recipe. The company employs a multi-channel distribution strategy, combining company-owned stores, franchise operations, and strategic retail partnerships to reach consumers. The doughnut specialist operates in more than 40 international markets, competing primarily against Dunkin', regional chains, and coffee giants like Starbucks (SBUX). Yet, with a 37.5% market share in the specialty donut segment and an impressive 95% brand recognition, Krispy Kreme has established itself as a leader in its niche. However, recent developments have created headwinds for the brand. In late June, Krispy Kreme announced an end to its partnership with McDonald's (MCD), which had made donuts available at 2,400 McDonald's locations. Despite the Sweet Surge, Bitter Fundamentals Krispy Kreme's recent financial results have been relatively lackluster. In Q1 of FY2025, the company reported net revenue of $375.2 million, a year-over-year decline of 15.3%. The company posted a net loss of -$33.4 million, with earnings per share of -$0.05 — a dramatic reversal compared to the same period the previous year. The balance sheet also contains several concerning metrics, with a debt-to-equity ratio of 1.32 and a worryingly low current ratio of 0.36, indicating potential liquidity constraints. Return on equity stands at -1.90%, while operating margins remain in negative territory at -2.45%. Not the signs of a healthy business. Valuation Disconnect Krispy Kreme's current valuation presents a puzzle, contributing to the stock's extreme volatility (26 moves greater than 5% over the past year). It trades at a relative discount to industry peers, with a price-to-sales ratio of 0.40x compared to the sector average of 0.95x, and a price-to-book ratio of 0.58x versus the 2.05x for the sector. However, the enterprise value-to-EBITDA multiple of 23.39x greatly exceeds the industry average of 11.24x, suggesting the company appears expensive on a cash flow basis. Typically, discounted multiples reflect market skepticism about a company's ability to achieve sustainable profitability. Yet, interest in Krispy Kreme has recently skyrocketed on investor sites like Reddit, where comments on DNUT surged over 76,800% last week. The stock's short interest had reached approximately 35% of the float, potentially helping to fuel the recent meme stock rally, as retail traders targeted the stock for a potential short squeeze. It now sits at 14.15%, indicating persistent doubts about the company across markets. The stock has since cooled a bit (down almost 14% over the past 5 days), which has given the moving averages technical indicators a bearish barbell (negative on the short and long averages, positive in the middle) — little help for momentum enthusiasts. Is Krispy Kreme (DNUT) a Good Stock to Buy? On Wall Street, DNUT stock carries a Hold consensus rating based on one Buy, six Hold, and one Sell ratings over the past three months. DNUT's average stock price target of $4.23 implies approximately 16.5% upside potential over the next twelve months. Analysts following the company have recently shown some skepticism about the stock. For instance, BNP Paribas Exane's Jaafar Mestari recently downgraded the stock and cut his price target to $3.50. Similarly, Morgan Stanley's Brian Harbour has cut his price target from $3 to $2.50 while maintaining a Sell rating. Even the more bullish Sara Senatore from Bank of America, who maintains a Buy rating on the stock, has recently cut her price target from $7 to $6. Resisting the FOMO Behind Krispy Kreme Krispy Kreme's investment appeal rests on its iconic brand, exceptional customer loyalty, and market-leading position. However, persistent margin compression and profitability struggles continue to plague its operations. Meanwhile, high leverage limits its financial flexibility, while negative returns on equity and capital raise questions about management's ability to generate shareholder value. While the stock has jumped recently, in general, investors should resist the temptation to chase a recent rally — especially when it introduces meme stock volatility that adds another layer of risk. The donut maker might eventually evolve into an attractive investment opportunity, but today's fundamentals don't support the recent price appreciation. Until Krispy Kreme demonstrates sustained profitability growth and improves its balance sheet, I believe the stock is better suited for addition to a watchlist…not a portfolio.

I'm a VPN expert — these are the top three VPN services I recommend
I'm a VPN expert — these are the top three VPN services I recommend

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I'm a VPN expert — these are the top three VPN services I recommend

VPNs are absolutely booming right now. From the UK's Online Safety Act introducing age verification to censorship being at an all-time high, everyone wants one. The thing is, there's a huge amount of substandard VPNs out there. I've tested plenty of them. What's even more worrying is that some of the worst offenders often sit above legitimate options in the App Store. Along with eating at McDonald's in every country I visit, it's pretty much my life's goal to give as many people good online privacy advice as I can. It's what I do all day, every day. So, with demand for the best VPNs surging, I thought it would be the perfect time to distil all my know-how into a quick ready reckoner covering which VPNs are worth spending your hard-earned money on. Plus, there are a couple of very tempting VPN deals you might not want to miss out on. You've heard of it. NordVPN is the most well-known VPN around, and according to my in-depth testing, I consider it the best as well. It's not too technical to use, but it also includes some useful advanced features like Double VPN and Meshnet. If you're new to VPNs, it's a great starting point, although Surfshark and ExpressVPN are simpler alternatives. It's also one of the best VPNs for streaming, has had its privacy policies independently audited and is very reliable, whether you're on Wi-Fi or out and about using your data. NordVPN: exclusive deal + free Amazon gift cardsUntil August 12, NordVPN is offering Tom's Guide readers an extra four months on all two-year plans. That drops the equivalent monthly rate to a reasonable $2.91 / £2.31 per month, which is paid up front. That means you'll pay $81.36 plus tax for 28 months of coverage. What's more, if you go for one of the more expensive tiers, you'll get up to $50 / £50 in Amazon gift cards for free. If you don't like it, there's a 30-day money back guarantee. Surfshark doesn't like to be described as such, but it's essentially NordVPN Lite. It's owned by the same parent company, it's more targeted towards beginners, it isn't quite as configurable and costs considerably less. Thanks to this, I rate it as the best cheap VPN. However, it's certainly not underpowered, and actually includes some unique features not available from any other VPN. A standout feature is Alternative ID, which allows you to make fake "personas," including disposable spoof email addresses that allow you to sign up to newsletters for discounts and then delete the inbox. Surfshark: try it out with a seven-day free trialSurfshark is one of the few premium VPNs to offer a true free trial on all platforms. You do have to input your payment information, but you'll get unlimited access to everything Surfshark offers for a week. If you cancel before your seven days are up, you won't have to pay a thing. If you stay on, prices start at $1.99 / £1.49 per month. You'll get three months free, which works out at $53.73 plus tax for 27 months of cover. Just like NordVPN, there's a 30-day refund period if you don't like it. ExpressVPN is the most premium-feeling of the big-name VPNs, and it has a price tag to match. However, in exchange for this, you get a huge amount of added features that NordVPN and Surfshark either don't offer, or charge extra for — plus super simple apps that are a pleasure to use. These include cyber insurance to protect you from scams, a password manager, malware and phishing protection, personal data removal and more. It's a huge package that's excellent value if you'll actually use everything it comes with. But, if you just need a VPN and nothing else, one of the two above will be a better choice. ExpressVPN: the most complete privacy packageExpressVPN's package of tools – including a top-quality VPN – covers just about all of your online privacy needs. The cyber insurance is particularly appealing, and provides up to $1M in ID theft compensation and legal support. Prices start at $4.99 / ~£3.99 per month (UK prices can vary). The two-year plan includes four months free, which works out at $139.72 overall. Again, there's a 30-day refund period so you can make sure you enjoy using it. VPNs are primarily designed to help you improve your online privacy. This is done by encrypting your data so your internet provider can't see what you're doing. They also send your traffic through an intermediary server that makes sure your internet provider can't see what website you're visiting, and hides your real IP address from that website. You can also choose to connect to servers located all around the world. This allows you to see different regional pricing, access streaming content that's exclusive to another country and avoid censorship and internet restrictions in your own country. Of course, VPNs aren't a silver bullet. Accessing illegal content with a VPN is still illegal. What's more, although a VPN can hide your real IP address from websites and mask what you're doing from your internet provider, there are still many ways you can compromise your privacy. For example, if you want to avoid targeted ads, VPNs can help, but you still need to make conscious decisions about staying private. For instance, if you're using a VPN and log into your Facebook account, and then start searching for running shoes, websites with tracking cookies can link this activity to your social media accounts. However, while they're not flawless, VPNs are the perfect starting place for improving your online privacy. We test and review VPN services in the context of legal recreational uses. For example: 1. Accessing a service from another country (subject to the terms and conditions of that service). 2. Protecting your online security and strengthening your online privacy when abroad. We do not support or condone the illegal or malicious use of VPN services. 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Prediction: These 3 Dividend Stocks Will Become Dividend Kings Within the Next 5 Years (and Are Great Buys for Passive Income)
Prediction: These 3 Dividend Stocks Will Become Dividend Kings Within the Next 5 Years (and Are Great Buys for Passive Income)

Yahoo

timea day ago

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Prediction: These 3 Dividend Stocks Will Become Dividend Kings Within the Next 5 Years (and Are Great Buys for Passive Income)

Key Points Sherwin-Williams has evolved into a paint and coating powerhouse with a 46-year streak of hiking dividends. The next Dividend King is a compelling stock to consider for purchase. McDonald's is top of the class when it comes to dividend reliability. 10 stocks we like better than Sherwin-Williams › There are about 55 companies that qualify as Dividend Kings -- meaning they have boosted their payouts for at least 50 consecutive years. The list will likely grow as existing Dividend Kings retain their status and new companies gain the distinction. Here's why Sherwin-Williams (NYSE: SHW), Pentair (NYSE: PNR), and McDonald's (NYSE: MCD) are all on track to become Dividend Kings within the next five years and are worth buying now. Sherwin-Williams has excelled at growing shareholder value -- and should continue to do so in the future Scott Levine (Sherwin-Williams): Professional painters and DIYers will certainly recognize the name Sherwin-Williams, but income investors will likely know the name for its extended commitment to rewarding shareholders. Over the past 46 years, Sherwin-Williams, whose stock currently offers a forward yield of 0.93, has provided investors with increasing dividend payouts. If the streak continues for another four years, the company will be coronated as a Dividend King. With origins going back to 1866, Sherwin-Williams has a long history that extends beyond its time as a dividend superstar. From its simple beginning until today, Sherwin-Williams has evolved into an industry stalwart, specializing in paints and coatings for automotive and marine applications, industrial wood coatings, and a variety of others. In addition to more than 5,400 stores and branches, Sherwin-Williams operates over 140 manufacturing and distribution facilities. Although the stock's 0.93% forward yield is modest, the allure of Sherwin-Williams stock as a passive income play is in the sustainability of its payout. Over the past decade, Sherwin-Williams has maintained an extremely conservative 26.6% payout ratio. Plus, the company generates ample free cash flow to cover the distributions. While some companies boast of impressive streaks of dividend raises -- all the while notching nominal boosts to their payout -- Sherwin-Williams has done the opposite. From 2014 through 2024, the company has raised its dividend at a 14.6% compound annual growth rate. For conservative investors looking for rock-solid income investments, Sherwin-Williams demands consideration. The stock is sensitive to activity in the housing market and industrial demand. However, investors who are comfortable riding out the temporary volatility will benefit over the long term. Solid end markets and ongoing margin expansion make Pentair an attractive stock to buy Lee Samaha (Pentair): This water products company has increased its dividend for 49 consecutive years, and is therefore on the cusp of becoming a Dividend King. As always with Dividend Kings, it's not just the dividend itself or the yield that's important; it's the reason why the company has been able to raise its dividend for so many consecutive years. In Pentair's case, it's the solidity of its end markets, which include fluid treatment and pump products and systems (Flow segment), commercial and residential water treatment solutions (Water Solutions), and energy-efficient pool solutions (Pool). There are two reasons to buy the stock. First, its end markets, as outlined above, depend on the need to maintain and improve water infrastructure, the growth of commercial and residential developments, as well as urbanization, and ongoing demand for pool products from an ever-growing installed base of pools in the U.S. The second reason stems from management's transformational initiatives, which continue to drive profit margins higher through more targeted pricing, reduced sourcing complexity, the implementation of lean manufacturing techniques, and a focus on developing and selling key products to key customers that account for the majority of its business, using the 80/20 rule. These initiatives have driven operating margin from 18.6% in 2022 to an estimated 25% in 2025 and then 26% in 2026, helping Pentair stock rise 45% since the start of 2022. McDonald's business model supports a growing dividend Daniel Foelber (McDonald's): In September 2024, McDonald's raised its dividend to $1.77 per share per quarter, marking its 48th consecutive year of boosting the payout. That puts McDonald's on track to reach 50 years of dividend increases by next year. McDonald's has the ideal business model for consistently returning cash to shareholders through dividends. Franchisees own and operate 95% of McDonald's restaurants -- paying McDonald's fees like rent and royalties. McDonald's offers franchises different options, depending on how much skin they want in the game. Half of McDonald's stores operate using a conventional license where McDonald's pays for the building and real estate, the franchisee pays for the equipment, and the franchisee collects operating profit from the store and pays McDonald's rent and royalties. Another option is a developmental license (20% of McDonald's restaurants), where the franchisee pays for the building, real estate, and equipment, thereby avoiding rent payments to McDonald's and pocketing a higher percentage of cash flow (although still paying McDonald's royalties). For foreign-affiliated franchisees (which are 25% of McDonald's restaurants), franchisees pay for equipment, the building, and real estate, and McDonald's receives royalties and equity-based earnings depending on its ownership stake. These fees give McDonald's steady free cash flow (FCF), making its results fairly predictable and its capital return program forecast highly accurate. McDonald's also has a very high operating margin because the franchise model is capital-light. That means McDonald's doesn't have to spend a lot of money to make money, and converts a high amount of sales to operating income. As you can see in the chart, McDonald's can afford to boost its dividend because of its high-margin FCF growth. Add it all up, and McDonald's stands out as an ultra-high-quality dividend stock that can serve as a foundational holding in a passive income portfolio. Should you invest $1,000 in Sherwin-Williams right now? Before you buy stock in Sherwin-Williams, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Sherwin-Williams 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 $630,291!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $1,075,791!* Now, it's worth noting Stock Advisor's total average return is 1,039% — a market-crushing outperformance compared to 182% for the S&P 500. Don't miss out on the latest top 10 list, available when you join Stock Advisor. See the 10 stocks » *Stock Advisor returns as of July 29, 2025 Daniel Foelber has no position in any of the stocks mentioned. Lee Samaha has no position in any of the stocks mentioned. Scott Levine has no position in any of the stocks mentioned. The Motley Fool recommends Sherwin-Williams. The Motley Fool has a disclosure policy. Prediction: These 3 Dividend Stocks Will Become Dividend Kings Within the Next 5 Years (and Are Great Buys for Passive Income) was originally published by The Motley Fool Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data

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