Krispy Kreme (DNUT) Q4 Earnings: What To Expect

Anthony Lee /
2024/02/12 2:02 am EST

Doughnut chain Krispy Kreme (NASDAQ:DNUT) will be reporting results tomorrow before the bell. Here's what investors should know.

Last quarter Krispy Kreme reported revenues of $407.4 million, up 7.9% year on year, missing analyst expectations by 1.6%. It was a weak quarter for the company, with a miss of analysts' revenue, gross margin, adjusted EBITDA, and EPS expectations. These misses were driven by underperformance in its U.S. division, which accounted for 63.9% of sales this quarter. On top of that, its revenue guidance for the full year was underwhelming.

Is Krispy Kreme buy or sell heading into the earnings? Read our full analysis here, it's free.

This quarter analysts are expecting Krispy Kreme's revenue to grow 8.4% year on year to $438.7 million, in line with the 9.2% year-over-year increase in revenue the company had recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.13 per share.

Krispy Kreme Total Revenue

Majority of analysts covering the company have reconfirmed their estimates over the last thirty days, suggesting they are expecting the business to stay the course heading into the earnings. The company missed Wall St's revenue estimates three times over the last two years.

Looking at Krispy Kreme's peers in the traditional fast food segment, some of them have already reported Q4 earnings results, giving us a hint of what we can expect. Yum! Brands delivered top-line growth of 0.8% year on year, missing analyst estimates by 3.3% and Starbucks reported revenues up 8.2% year on year, missing analyst estimates by 2.1%. Yum! Brands traded down 1.9% on the results, Starbucks was up 2.3%.

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 the stocks up on average 5.7% over the last month. Krispy Kreme is down 1.6% during the same time, and is heading into the earnings with analyst price target of $15.8, compared to share price of $13.5.

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