Doughnut chain Krispy Kreme (NASDAQ: DNUT) will be reporting earnings this Thursday before market hours. Here’s what you need to know.
Krispy Kreme beat analysts’ revenue expectations last quarter, reporting revenues of $331 million, down 12.8% year on year. It was a satisfactory quarter for the company, with a solid beat of analysts’ EBITDA estimates but EPS in line with analysts’ estimates.
Is Krispy Kreme a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.
This quarter, the market is expecting Krispy Kreme’s revenue to decline 16.1% year on year, a further deceleration from the 1.2% decrease it recorded in the same quarter last year.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business will stay the course heading into earnings. Krispy Kreme has missed Wall Street’s revenue estimates multiple times over the last two years.
Looking at Krispy Kreme’s peers in the traditional fast food segment, some have already reported their Q3 results, giving us a hint as to what we can expect. Yum! Brands delivered year-on-year revenue growth of 3.8%, beating analysts’ expectations by 2.8%, and Starbucks reported a revenue decline of 4.5%, falling short of estimates by 0.9%. Starbucks traded down 1.7% following the results.
Read our full analysis of Yum! Brands’s results here and Starbucks’s results here.
There has been positive sentiment among investors in the traditional fast food segment, with share prices up 13.4% on average over the last month. Krispy Kreme is up 13% during the same time and is heading into earnings with an average analyst price target of $4.18 (compared to the current share price of $3.27).
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