Latest news with #DNUT
Yahoo
3 days ago
- Business
- Yahoo
2 Bargain Stocks That Could Double Your Money
Key Points Krispy Kreme offers substantial upside if management can stabilize sales and reduce debt. Lululemon's premium brand positioning in the sports apparel market is significantly undervalued. 10 stocks we like better than Krispy Kreme › Even with the stock market hitting new highs, there are plenty of industries with beaten-down stocks that could benefit from an improving economy over the next five years. Krispy Kreme (NASDAQ: DNUT) stock is down 67% over the past year due to weak financial results, but the stock could soar if management's moves to improve profitability pay off. Lululemon Athletica (NASDAQ: LULU) stock is trading 57% off its recent highs over slowing growth and concerns about competition, but its recent financial results indicate that this brand is in a much stronger position than the market is giving it credit for. Let's dive deeper into why these stocks are underperforming, and why they could at least double from here. 1. Krispy Kreme Shares of Krispy Kreme haven't looked so crispy lately. The stock nosedived earlier this year after delivering disappointing revenue and earnings results. Making matters worse was the announcement that the company would suspend paying dividends to shareholders. But this just reflects the greater problem the company must solve to pay down its debt and shore up profitability. Krispy Kreme reported a loss of $33 million in the first quarter on $375 million of revenue, and revenue was down 15% over the year-ago quarter. It has restructured the leadership, and one of the initiatives is expanding the number of locations where doughnuts can be purchased. Global points of access grew 21% year over year in Q1 to 17,982, and management is aiming to reach 100,000 purchase locations in the future. While opening up more ways for customers to buy doughnuts can help strengthen sales, management is also focused on growing cash flow and paying down debt. The business is saddled with nearly $1 billion in debt and just $18.7 million in cash on its balance sheet. However, the business generated $42 million in cash from operations on a trailing 12-month basis, giving management resources to reduce debt. To strengthen sales, management is reducing reliance on discounting, being more diligent with marketing expenses, and focusing on higher-value options that drive higher margins. On the latter, it is looking to partner with grocery stores and mass retailers like Costco and Walmart's Sam's Club to sell large-volume doughnut packs. The high-volume sales at these locations could generate higher turnover and margins for the company to boost cash flow. Analysts expect Krispy Kreme's annual revenue to reach $2.7 billion by 2029. If the stock trades at a conservative price-to-sales (P/S) multiple of 0.50, that would translate to a 2.5x return from the current $3.13 share price. A sales multiple of 1 would translate to a $16 share price, or 5x return. Krispy Kreme is not a pretty-looking situation, but you have to be willing to buy stocks that no one wants to own to land those elusive multibaggers. There is execution risk here, as there is for any turnaround situation. But if current leadership can stabilize sales and reduce debt, this is a promising turnaround play for a high return in the next four years. 2. Lululemon Athletica Lululemon stock delivered market-beating returns over the last 15 years, as its brand emerged in the mainstream with the leaders in a historically growing industry. Some investors might see Lululemon as being past its prime, but its trailing 12-month revenue of $10.7 billion is still a very small share of the athletic apparel industry. It's got a lot of growth potential that isn't reflected in the stock price. A number of new competitors have emerged over the past decade. Apparel is one of the most competitive industries out there, but Lululemon was still growing revenue at over 20% annually just a few years ago. A crowded market didn't prevent Lululemon from taking on industry leaders like Nike and Adidas to get to where it is today. The only thing that has changed over the past few years is the economic environment, which has weighed on sales across the industry. The economy has been through multiple headwinds over the past five years with the pandemic, rising inflation, and elevated interest rates, which have exasperated people's appetite for spending on non-essential items like new clothes. This is pressuring Nike more than Lululemon. Lululemon's revenue grew 7% year over year last quarter, while Nike posted a decline. Lululemon's sales have consistently outperformed the industry leader over the last 10 years. Wall Street doesn't give the company enough credit for this. Lululemon's brand strength is evident in its gross margin, which came in at 58.3% in fiscal Q1 2025, up from 57.7% in fiscal Q1 2024, and slightly higher than 57.5% in fiscal Q1 2024. In a stronger consumer spending environment, Lululemon's premium brand positioning is capable of delivering stronger growth. Lululemon's above-average margins and financial strength should allow it to weather sluggish sales trends, as well as any obstacles that tariffs on imported goods might present in the near term. Lululemon has $1.3 billion of cash and no debt on its balance sheet. The stock is trading at just 15 times this year's consensus earnings estimate, implying that analysts expect Lululemon to continue reporting a healthy profit. This is a bargain for a company that is still expanding into new categories, like footwear, and that has a lot of room to grow internationally over the long term. A combination of earnings growth and a higher price-to-earnings multiple could at least double the stock by 2030. 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 for investors to buy now… and Krispy Kreme wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $636,774!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $1,064,942!* Now, it's worth noting Stock Advisor's total average return is 1,040% — 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 21, 2025 John Ballard has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Costco Wholesale, Lululemon Athletica Inc., Nike, and Walmart. The Motley Fool has a disclosure policy. 2 Bargain Stocks That Could Double Your Money 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
Yahoo
3 days ago
- Business
- Yahoo
2 Bargain Stocks That Could Double Your Money
Key Points Krispy Kreme offers substantial upside if management can stabilize sales and reduce debt. Lululemon's premium brand positioning in the sports apparel market is significantly undervalued. 10 stocks we like better than Krispy Kreme › Even with the stock market hitting new highs, there are plenty of industries with beaten-down stocks that could benefit from an improving economy over the next five years. Krispy Kreme (NASDAQ: DNUT) stock is down 67% over the past year due to weak financial results, but the stock could soar if management's moves to improve profitability pay off. Lululemon Athletica (NASDAQ: LULU) stock is trading 57% off its recent highs over slowing growth and concerns about competition, but its recent financial results indicate that this brand is in a much stronger position than the market is giving it credit for. Let's dive deeper into why these stocks are underperforming, and why they could at least double from here. 1. Krispy Kreme Shares of Krispy Kreme haven't looked so crispy lately. The stock nosedived earlier this year after delivering disappointing revenue and earnings results. Making matters worse was the announcement that the company would suspend paying dividends to shareholders. But this just reflects the greater problem the company must solve to pay down its debt and shore up profitability. Krispy Kreme reported a loss of $33 million in the first quarter on $375 million of revenue, and revenue was down 15% over the year-ago quarter. It has restructured the leadership, and one of the initiatives is expanding the number of locations where doughnuts can be purchased. Global points of access grew 21% year over year in Q1 to 17,982, and management is aiming to reach 100,000 purchase locations in the future. While opening up more ways for customers to buy doughnuts can help strengthen sales, management is also focused on growing cash flow and paying down debt. The business is saddled with nearly $1 billion in debt and just $18.7 million in cash on its balance sheet. However, the business generated $42 million in cash from operations on a trailing 12-month basis, giving management resources to reduce debt. To strengthen sales, management is reducing reliance on discounting, being more diligent with marketing expenses, and focusing on higher-value options that drive higher margins. On the latter, it is looking to partner with grocery stores and mass retailers like Costco and Walmart's Sam's Club to sell large-volume doughnut packs. The high-volume sales at these locations could generate higher turnover and margins for the company to boost cash flow. Analysts expect Krispy Kreme's annual revenue to reach $2.7 billion by 2029. If the stock trades at a conservative price-to-sales (P/S) multiple of 0.50, that would translate to a 2.5x return from the current $3.13 share price. A sales multiple of 1 would translate to a $16 share price, or 5x return. Krispy Kreme is not a pretty-looking situation, but you have to be willing to buy stocks that no one wants to own to land those elusive multibaggers. There is execution risk here, as there is for any turnaround situation. But if current leadership can stabilize sales and reduce debt, this is a promising turnaround play for a high return in the next four years. 2. Lululemon Athletica Lululemon stock delivered market-beating returns over the last 15 years, as its brand emerged in the mainstream with the leaders in a historically growing industry. Some investors might see Lululemon as being past its prime, but its trailing 12-month revenue of $10.7 billion is still a very small share of the athletic apparel industry. It's got a lot of growth potential that isn't reflected in the stock price. A number of new competitors have emerged over the past decade. Apparel is one of the most competitive industries out there, but Lululemon was still growing revenue at over 20% annually just a few years ago. A crowded market didn't prevent Lululemon from taking on industry leaders like Nike and Adidas to get to where it is today. The only thing that has changed over the past few years is the economic environment, which has weighed on sales across the industry. The economy has been through multiple headwinds over the past five years with the pandemic, rising inflation, and elevated interest rates, which have exasperated people's appetite for spending on non-essential items like new clothes. This is pressuring Nike more than Lululemon. Lululemon's revenue grew 7% year over year last quarter, while Nike posted a decline. Lululemon's sales have consistently outperformed the industry leader over the last 10 years. Wall Street doesn't give the company enough credit for this. Lululemon's brand strength is evident in its gross margin, which came in at 58.3% in fiscal Q1 2025, up from 57.7% in fiscal Q1 2024, and slightly higher than 57.5% in fiscal Q1 2024. In a stronger consumer spending environment, Lululemon's premium brand positioning is capable of delivering stronger growth. Lululemon's above-average margins and financial strength should allow it to weather sluggish sales trends, as well as any obstacles that tariffs on imported goods might present in the near term. Lululemon has $1.3 billion of cash and no debt on its balance sheet. The stock is trading at just 15 times this year's consensus earnings estimate, implying that analysts expect Lululemon to continue reporting a healthy profit. This is a bargain for a company that is still expanding into new categories, like footwear, and that has a lot of room to grow internationally over the long term. A combination of earnings growth and a higher price-to-earnings multiple could at least double the stock by 2030. 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 for investors to buy now… and Krispy Kreme wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $636,774!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $1,064,942!* Now, it's worth noting Stock Advisor's total average return is 1,040% — 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 21, 2025 John Ballard has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Costco Wholesale, Lululemon Athletica Inc., Nike, and Walmart. The Motley Fool has a disclosure policy. 2 Bargain Stocks That Could Double Your Money 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
Yahoo
5 days ago
- Business
- Yahoo
Meet the new meme stocks: Krispy Kreme, GoPro, and Kohl's shares soar as Reddit traders drive hype cycle
Over the past several days, the share prices of three companies have surged 25% or more in a single trading session. Those companies are Krispy Kreme, GoPro, and Kohl's. Yet none of these firms have made any major announcements of late that support such lofty rises in their stock prices. So why are their share prices skyrocketing? Southwest Airlines' open seating is ending: Here's what the new 8-group boarding process will look like Stop being a martyr at work. Aim for sustainable success instead Chipotle's CEO just shared the reason why sales have been down. Many fast food fans will relate It looks like meme stock mania is back. What is a meme stock? The term 'meme stock' first gained popularity during the early pandemic years. During the 2020–2021 period, many people were confined indoors due to lockdowns or a general fear of going out, so they turned to the internet to pass the time, often taking on new digital hobbies or joining new communities. For many, a new hobby emerged: online investing. As a result, many of these new investors turned to social media for advice on which stocks to buy. Perhaps the most popular social media community for stock advice was the Reddit forum r/wallstreetbets, and it is in this community where many consider meme stock mania to have originated. A meme stock is generally defined as a stock that is promoted by members of an online community, such as the one found in the r/wallstreetbets subreddit. Proponents of a meme stock buy shares of a stock at a low price—often in struggling companies with some brand name awareness—and then promote it, attempting to build hype and a positive narrative about the stock, as noted by Investopedia. The goal is to get in on the meme stock while the price is low, see the value surge as more people who are afraid of missing out on a 10x or 100x bagger buy into the stock, and then often to get out of the stock before the hype collapses and the shares crash again. As Reuters points out, meme stocks are often heavily shorted. The rise in share prices for these stocks force investors who had bet against the stock to sell their shares to limit their losses. In the early pandemic years, two of the most popular meme stocks were the struggling video game retailer GameStop Corp. (NYSE: GME) and movie theater chain AMC Entertainment Holdings, Inc. (NYSE: AMC). But now, as of this week, there's a new trio of meme stocks sending a frenzy through online trading communities. Krispy Kreme Probably the most well-known meme stock among the new trio is Krispy Kreme (Nasdaq: DNUT), the donut company that loves giving away tasty treats. Over the past day or so, people have been talking up DNUT stock on social media, and as a result, Krispy Kreme shares have surged. Yesterday, Krispy Kreme's stock price jumped a staggering 26% in a single trading session. DNUT stock went up 87 cents per share to close at $4.13. And today the stock is surging again in premarket trading, as of the time of this writing. DNUT shares are currently up another 25%. GoPro Another moderately well-known brand name is also the newest meme stock. GoPro, Inc. (Nasdaq: GPRO), maker of the tiny portable cameras that are popular with extreme sports enthusiasts, saw its shares blast off yesterday. In Tuesday's trading session, GPRO shares leaped an asounting 41%. The company's stock price went up 39 cents per share to $1.37 by market close. And today, GPRO stock is trending even higher. As of the time of this writing, in premarket trading, GoPro shares are up another 56% to $2.14 per share. Kohl's The third meme stock in this latest trinity is Kohl's Corporation (NYSE: KSS). The clothing retailer's shares jumped a massive 37% yesterday in a single trading session. During the period, KSS shares climbed $3.92 to $14.34. The volatility led to trading being temporarily halted, as CNBC reported. But as of premarket trading this morning, KSS shares aren't having continued gains. The stock is currently trading flat in premarket, according to data from Yahoo Finance. Fast Company reached out to Krispy Kreme, GoPro, and Kohl's for comment. A cautionary tale It's hard not to see single-day gains of 25% to 50% in a stock and not feel the urge to buy in. However, most financial advisers would advise against buying into a meme stock as they are considered a relatively high-risk investment. That's because meme stocks see their prices surge due to the hype online communities build up around that stock, not due to any firm fundamentals of the company itself. This online hype often leads many to buy into the stock, causing its price to surge. But if the fundamentals of a company do not support the stock's price, the stock will most likely crash, and investors who got in at the wrong time could see their entire investment washed away. Take one of the most popular meme stocks in history, for example. People went crazy for AMC Entertainment Holdings, Inc. (NYSE: AMC) in December 2020. That month, the stock was trading for around a low of $20, according to Yahoo Finance data. But then meme mania bit, and by June 2021, AMC shares were over $566 each. Yet by the next month, AMC shares had declined to $370 apiece, and by December 2021, they were in the low $40s. As of yesterday's close, AMC shares are worth $3.50 each. The lesson here is that meme stocks can surge in price rapidly, but they can fall just as rapidly, too. This post originally appeared at to get the Fast Company newsletter: Sign in to access your portfolio
Yahoo
6 days ago
- Business
- Yahoo
Krispy Kreme Is Getting Some Meme Investor Love. How Should You Play DNUT Stock Here?
Krispy Kreme (DNUT) shares opened roughly 40% higher today as meme stock enthusiasts shifted focus from the likes of Opendoor (OPEN) and Kohl's (KSS) to the doughnut company. According to multiple sources, more than 30% of DNUT's float is currently sold short, making it a prime candidate for a short squeeze. More News from Barchart Nvidia Stock Warning: This NVDA Challenger Just Scored a Major Customer Dear Microsoft Stock Fans, Mark Your Calendars for July 30 Dear QuantumScape Stock Fans, Mark Your Calendars for July 23 Markets move fast. Keep up by reading our FREE midday Barchart Brief newsletter for exclusive charts, analysis, and headlines. While Krispy Kreme stock has pared back some of its intraday gains in recent hours, at one point, it was seen trading well over 100% up versus its year-to-date low set in late June. Why Is It Risky to Chase the Meme Stock Rally in Krispy Kreme Stock? The meme stock frenzy in DNUT shares offered lucrative returns to investors this morning, but chasing that momentum now may prove a textbook case of trying to catch a falling knife, according to Daniela Sabin Hathorn – a analyst. 'The risks are just as stark as the rewards,' she write in a research note today, adding retail driven rallies like the one in Krispy Kreme stock on Wednesday are often 'disconnected from fundamentals' and, therefore, run the risk of reversing just as quickly. In short, Hathorn recommends accepting the ship has already sailed instead of initiating a position in the food company on the pullback – hoping another short squeeze may materialize in it in the coming days. Sinking Revenue Remains an Overhang for DNUT Shares Investors should practice caution in owning Krispy Kreme shares amid ongoing speculation also because the company's financials remain deeply challenged. In its latest reported quarter, the Charlotte-headquartered firm generated roughly $375 million in revenue, down a more-than-expected 15% on a year-over-year basis. Additionally, Krispy Kreme continued to burn cash, losing about $0.05 on a per-share basis in its fiscal Q1. Krispy Kreme Is Trading Well Below the Street's Mean Target Despite thin financials and risks related to the company's newly earned meme stock status, Wall Street analysts believe DNUT shares have significant room to the upside from current levels. While the consensus rating on Krispy Kreme stock sits at 'Hold' only, the mean target of roughly $6.33 indicates potential upside of more than 45% from here. On the date of publication, Wajeeh Khan did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. This article was originally published on
Associated Press
08-07-2025
- Business
- Associated Press
INVESTOR ALERT: Holzer & Holzer, LLC Reminds Investors of July 15, 2025 Lead Plaintiff Deadline in the Krispy Kreme, Inc. (DNUT) Class Action – Investors With Significant Losses Encouraged to Contact the Firm
ATLANTA, July 08, 2025 (GLOBE NEWSWIRE) -- A shareholder class action lawsuit has been filed against Krispy Kreme, Inc. ('Krispy Kreme' or the 'Company') (NASDAQ: DNUT). The lawsuit alleges that Defendants made materially false and/or misleading statements and/or failed to disclose material adverse information about Krispy Kreme's business, operations, and prospects, including allegations that: (1) demand for Krispy Kreme products declined materially at McDonald's locations after the initial marketing launch; (2) demand at McDonald's locations was a driver of declining average sales per door per week; (3) the partnership with McDonald's was not profitable; (4) the foregoing posed a substantial risk to maintaining the partnership with McDonald's; and (5) as a result, the Company would pause expansion into new McDonald's locations. If you purchased shares of Krispy Kreme between March 26, 2024 and May 7, 2025, and experienced a significant loss on that investment, you are encouraged to discuss your legal rights by contacting Corey D. Holzer, Esq. at [email protected], by toll-free telephone at (888) 508-6832, or by visiting the firm's website at for more information. The deadline to ask the court to be appointed lead plaintiff in the case is July 15, 2025. Holzer & Holzer, LLC, an ISS top rated securities litigation law firm for 2021, 2022, and 2023, dedicates its practice to vigorous representation of shareholders and investors in litigation nationwide, including shareholder class action and derivative litigation. Since its founding in 2000, Holzer & Holzer attorneys have played critical roles in recovering hundreds of millions of dollars for shareholders victimized by fraud and other corporate misconduct. More information about the firm is available through its website, and upon request from the firm. Holzer & Holzer, LLC has paid for the dissemination of this promotional communication, and Corey Holzer is the attorney responsible for its content. CONTACT: Corey Holzer, Esq. (888) 508-6832 (toll-free) [email protected]
