Krispy Kreme, Inc. (NASDAQ: DNUT) has been a rollercoaster for investors in 2025, with its stock price swinging wildly amid a meme stock frenzy and challenging fundamentals. As of July 23, 2025, Krispy Kreme’s stock price stands at $4.32, reflecting a volatile year marked by a 56.53% year-to-date decline, yet a recent 26.7% surge driven by retail investor hype. U.S. investors are buzzing about whether this is a fleeting short squeeze or a sign of a potential turnaround for the iconic doughnut brand. Let’s dive into the Krispy Kreme Stock 2025 story, exploring its performance, challenges, and what lies ahead for shareholders.
Krispy Kreme’s 2025 Performance: A Glazed Overview
Krispy Kreme’s stock has faced a tough 2025, dropping 73% year-to-date as of June, with a 52-week low of $2.50 and a high of $12.68. The finance card above shows a current price of $4.32, with a market cap of $705.4 million, down significantly from its $2.6 billion IPO valuation in 2021. On July 22, 2025, the stock surged 26.7%, followed by a premarket jump of 18.5% to 34% on July 23, hitting around $4.88 before settling. This volatility stems from a meme stock rally fueled by high short interest (28-32% of free-floating shares) and social media buzz on platforms like Reddit’s WallStreetBets and X, with hashtags like #DNUTsqueeze and #KrispyMoon trending.
Despite the hype, Krispy Kreme’s fundamentals paint a less rosy picture. The company reported a Q1 2025 revenue of $375.2 million, down 15.3% year-over-year, with a non-GAAP loss per share of -$0.05, compared to a $0.07 profit the prior year. A failed McDonald’s partnership, a cybersecurity incident, and suspended dividends have spooked investors, contributing to the stock’s decline.
What’s Driving the Meme Stock Frenzy?
The recent Krispy Kreme Stock 2025 surge mirrors the 2021 GameStop and AMC rallies, driven by retail investors targeting heavily shorted stocks. With 28-32% of shares shorted, Krispy Kreme became a prime candidate for a short squeeze, where short sellers scramble to cover positions, pushing the price higher. On July 22, call option trading volume hit 100,000 contracts—71 times the four-year average—amplifying the rally. Social media platforms, including X posts from users like @atmdotday, fueled the frenzy, with some claiming the market cap jumped from $719,000 to $4.28 million in hours (though this seems inflated based on current data).
Krispy Kreme Stock Surge in 2025:Analysts note that this rally is less about fundamentals and more about speculative trading. Posts on X, like one from @Reuters, highlight the 39% surge tied to retail investor momentum, while @TrungTPhan praised Krispy Kreme’s manufacturing prowess, producing 2 billion doughnuts annually. However, @buccocapital on X warned that this rally won’t match GameStop’s 2021 heights, reflecting mixed sentiment.
Challenges Facing Krispy Kreme
Krispy Kreme’s struggles in 2025 are multifaceted:
- Failed McDonald’s Partnership: A high-profile deal to sell doughnuts at 2,400 U.S. McDonald’s locations flopped, leading to its termination by July 2025. This setback crushed expectations of boosted demand, as noted in a Reddit post on r/EconomyCharts.
- Financial Woes: Q1 2025 saw a 2.6% drop in U.S. organic revenue and a 1% decline in international sales per hub, despite a 21.2% increase in global points of access. The company’s Altman Z-score of 0.49 signals bankruptcy risk within two years.
- Cybersecurity Incident: A June 2025 cyberattack compromised customer data, adding costs and reputational damage.
- Dividend Suspension: Krispy Kreme halted its $0.035 quarterly dividend to conserve cash, further eroding investor confidence.
- Lawsuits: Investors filed a class action lawsuit, alleging the company misled them about the McDonald’s deal’s success, as reported by Robbins LLP.
These challenges have led to downgrades, with BNP Paribas Exane moving Krispy Kreme to Neutral and Bank of America lowering its price target to $6 from $7, though maintaining a “Buy” rating.
Is There a Sweet Spot for Investors?
Despite the gloom, there are glimmers of hope for Krispy Kreme Stock 2025. The stock’s price-to-sales (P/S) ratio of 0.3 suggests it’s deeply discounted, potentially offering value for long-term investors. The company’s iconic brand, with 426 hubs servicing 17,982 global points of access, remains a strength. Its hub-and-spoke model, delivering fresh doughnuts to grocery stores, convenience stores, and digital channels, is innovative, even if execution has faltered.
Analysts are mixed. Eight analysts give a “Buy” rating with an average 12-month price target of $8.3, a 95.29% upside from the current $4.32, per StockAnalysis.com. However, Morgan Stanley cut its target to $2.50, citing execution risks. The next earnings report, due August 14, 2025, is expected to show a -$0.03 EPS and $378.69 million in revenue, offering a chance to gauge progress.
Tips for U.S. Investors
- Monitor the August Earnings: The Q2 2025 report will be critical. Look for signs of stabilizing revenue or cost-cutting measures under new CFO Raphael Duvivier.
- Watch Meme Stock Volatility: The recent surge is speculative. Use the finance card above to track real-time price movements and set alerts for sudden drops.
- Assess Risk Tolerance: With a beta of 1.33, DNUT is 33% more volatile than the market. Conservative investors may want to wait for clearer signs of recovery.
- Consider Long-Term Value: The low P/S ratio and strong brand suggest potential, but only for those willing to weather uncertainty.
What’s Next for Krispy Kreme Stock 2025?
Krispy Kreme’s future hinges on fixing its cost structure and regaining consumer demand. The company’s decision to sell its Insomnia Cookies stake and refinance $700 million in debt signals efforts to shore up its balance sheet. However, with no quick turnaround in sight, as noted by The Motley Fool, the stock remains a high-risk play. The meme stock rally offers short-term excitement, but long-term investors need to see operational improvements.
U.S. investors, keep an eye on Krispy Kreme’s next moves. Will it rise like a fresh-glazed doughnut, or remain stale? Check the finance card above for real-time updates, and stay tuned for the August 14 earnings to see if Krispy Kreme can sweeten its outlook.
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