Krispy Kreme Stock Fair Value – Krispy Kreme Experiences 9.0% Increase in Revenue for Second Quarter of FY2023

August 24, 2023

☀️Earnings Overview

On August 10 2023, KRISPY KREME ($NASDAQ:DNUT) announced its earnings for the second quarter of FY2023, showing a 9.0% rise in total revenue to USD 408.9 million compared to the same period in 2022. Net income also increased by 105.7%, reaching USD 0.22 million.

Analysis – Krispy Kreme Stock Fair Value

GoodWhale has conducted a comprehensive analysis of KRISPY KREME‘s wellbeing. After analyzing the various factors that affect the company‚Äôs value, we determined that the intrinsic value of KRISPY KREME share is around $15.4, calculated by our proprietary Valuation Line. However, the current market price of KRISPY KREME stock is at $12.4, representing a fair price that is undervalued by 19.4%. This means that investors stand to benefit if they purchase KRISPY KREME stock at its current price. More…

  • Risk Rating Analysis
  • Star Chart Analysis
  • Valuation Analysis
  • About the Company

  • Industry Classification
  • Key Executives
  • Ownership (Institutional/ Fund Holdings)
  • News Feed
  • 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%
  • Income Statement Reports (Yearly/ Quarterly/ LTM)
  • Income Supplement
  • Growth Performance
  • 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
  • Cash Flow Statement (Yearly/ Quarterly/ LTM)
  • Cash Flow Supplement
  • 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
  • Balance Sheet (Yearly/ Quarterly)
  • Balance Sheet Supplement
  • 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%
  • Income Statement Ratios
  • Balance Sheet Ratios
  • Cash Flow Ratios
  • Valuation Ratios
  • Other Ratios
  • Other Supplementary Items




  • 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 performance in FY2023 was very encouraging. Total revenue for the period amounted to USD 408.9 million, representing a 9.0% increase year-over-year. Net income also saw a significant jump of 105.7% to USD 0.22 million. Despite these positive numbers, the stock price moved down on the same day.

    Investors should take note of this and utilize this information to make more informed decisions regarding their investments in Krispy Kreme. Krispy Kreme’s financial performance over the past few quarters, as well as their outlook for future growth, should be carefully examined by potential investors. With strong fundamentals and industry-leading performance, Krispy Kreme is an attractive option for those looking to add a reliable and profitable stock to their portfolio.

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