Krispy Kreme, Inc. (NASDAQ:DNUT) Just Released Its Third-Quarter Results And Analysts Are Updating Their Estimates

Shareholders will be ecstatic, with their stake up 27% over the past week following Krispy Kreme, Inc.'s (NASDAQ:DNUT) latest quarterly results. The results don't look great, especially considering that statutory losses grew 118% toUS$0.08 per share. Revenues of US$329m did beat expectations by 5.6%, but it looks like a bit of a cold comfort. Earnings are an important time for investors, as they can track a company's performance, look at what the analysts are forecasting for next year, and see if there's been a change in sentiment towards the company. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on Krispy Kreme after the latest results.

We've found 21 US stocks that are forecast to pay a dividend yield of over 6% next year. See the full list for free.

Following the recent earnings report, the consensus from five analysts covering Krispy Kreme is for revenues of US$1.34b in 2027. This implies a discernible 5.9% decline in revenue compared to the last 12 months. The loss per share is expected to greatly reduce in the near future, narrowing 79% to US$0.10. Before this earnings announcement, the analysts had been modelling revenues of US$1.40b and losses of US$0.11 per share in 2027. So there seems to have been a moderate uplift in analyst sentiment with the latest consensus release, given the upgrade to loss per share forecasts for next year.

See our latest analysis for Krispy Kreme

There was no major change to the US$4.32average price target, suggesting that the adjustments to revenue and earnings are not expected to have a long-term impact on the business. The consensus price target is just an average of individual analyst targets, so - it could be handy to see how wide the range of underlying estimates is. Currently, the most bullish analyst values Krispy Kreme at US$6.30 per share, while the most bearish prices it at US$3.00. Note the wide gap in analyst price targets? This implies to us that there is a fairly broad range of possible scenarios for the underlying business.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Krispy Kreme's past performance and to peers in the same industry. We would highlight that revenue is expected to reverse, with a forecast 4.7% annualised decline to the end of 2027. That is a notable change from historical growth of 1.1% over the last five years. Compare this with our data, which suggests that other companies in the same industry are, in aggregate, expected to see their revenue grow 9.2% per year. So although its revenues are forecast to shrink, this cloud does not come with a silver lining - Krispy Kreme is expected to lag the wider industry.

The Bottom Line

The most important thing to take away is that the analysts reconfirmed their loss per share estimates for next year. Unfortunately, they also downgraded their revenue estimates, and our data indicates underperformance compared to the wider industry. Even so, earnings per share are more important to the intrinsic value of the business. Even so, long term profitability is more important for the value creation process. The consensus price target held steady at US$4.32, with the latest estimates not enough to have an impact on their price targets.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. We have forecasts for Krispy Kreme going out to 2028, and you can see them free on our platform here.

Plus, you should also learn about the 2 warning signs we've spotted with Krispy Kreme .

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.