Krispy Kreme Stock Fair Value Calculator – Krispy Kreme Reports 9% Increase in Revenue for Q2 FY2023
August 13, 2023
☀️Earnings Overview
Krispy Kreme ($NASDAQ:DNUT) reported a total revenue of $408.9 million for the second quarter of FY2023 on August 10 2023, showcasing a 9.0% year-over-year growth, and an impressive 105.7% increase in net income from the same period in the previous year.
Analysis – Krispy Kreme Stock Fair Value Calculator
GoodWhale provides comprehensive financial analysis on KRISPY KREME and our proprietary Valuation Line calculates the fair value of KRISPY KREME at around $15.4 per share. Currently, KRISPY KREME is trading at $12.4 per share. This means that the stock is currently undervalued by 19.5%. For investors, this translates into a great opportunity for long-term capital appreciation as the price of the stock increases back to its fair value. Investing in KRISPY KREME shares now provides investors with an excellent opportunity for long-term gains. More…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Krispy Kreme. More…
| Total Revenues | Net Income | Net Margin |
| 1.61k | -15.85 | -1.0% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Krispy Kreme. More…
| Operations | Investing | Financing |
| 132.15 | -117.3 | -10.58 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Krispy Kreme. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 3.17k | 1.87k | 7.19 |
Key Ratios Snapshot
Some of the financial key ratios for Krispy Kreme are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 16.8% | -13.9% | 1.2% |
| FCF Margin | ROE | ROA |
| 1.1% | 1.0% | 0.4% |
Peers
In the competitive world of donut making, there are a few key players that stand out. Krispy Kreme Inc, Loblaw Companies Ltd, Woolworths Group Ltd, and Atacadao SA are all major companies in the industry. They all have their own unique recipes, strengths, and weaknesses. However, Krispy Kreme seems to be the clear leader in terms of market share and profitability.
– Loblaw Companies Ltd ($TSX:L)
Loblaw Companies Ltd. is a Canadian food and pharmacy retailer headquartered in Brampton, Ontario. The company has more than 2,000 stores across Canada and employs more than 190,000 people. The company’s grocery store banners include Loblaws, Real Canadian Superstore, Fortinos, No Frills, and Shoppers Drug Mart. Loblaw is the largest food retailer in Canada and the largest pharmacy chain in the country. The company also has a large financial services division that includes President’s Choice Financial and PC Insurance.
– Woolworths Group Ltd ($ASX:WOW)
Woolworths Group Ltd is a retail company with operations in Australia and New Zealand. The company has a market capitalization of 40.58 billion as of 2022 and a return on equity of 23.27%. Woolworths Group Ltd is engaged in the retail sale of food, liquor, petrol, general merchandise, and home improvement products. The company also provides financial services, including credit cards, personal loans, and insurance products.
– Atacadao SA ($OTCPK:ATAAY)
Atacadao SA is a Brazilian company that operates as a wholesale distributor of food, non-food items, and personal care products. The company has a market cap of 7.48B as of 2022 and a Return on Equity of 19.02%. Atacadao SA operates through two segments: Food Distribution and Non-food Distribution. The Food Distribution segment offers meat, poultry, fish, fruits, vegetables, sugar, coffee, grains, and dairy products. The Non-food Distribution segment includes general merchandise, home appliances, electronics, and personal care products.
Summary
Krispy Kreme‘s second quarter of FY2023 financial results were mixed. Total revenue grew by 9.0%, but net income dropped to just $0.22 million, an increase of 105.7% year-over-year. Despite the impressive growth in profits, investors reacted negatively, with the stock price dropping on the day the results were reported.
Analysts suggest that investors are uncertain about the company’s ability to maintain this rate of growth going forward. Despite this, it may be a good opportunity for investors to buy at a relatively low cost.
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