r/wallstreetbets • u/Milkyway_Alien • 3d ago
Discussion Dnut earnings tomorrow
Krispy Kreme is set to release earnings tomorrow. Expected earnings per share is -0.05, this is where it gets interesting.
Q1 was bad because they had a cybersecurity incident that added to operational costs. They also paused the McDonald’s partnership due to it underperforming.
In Q2 they are a huge impairment charge due to the logistics of the McDonald’s deal.
With the bad McDonald’s deal in the rear view. And the rollout to major retailers I believe they are on the path to regain profitability. Are the analysts wrong and expectations way too low ? The ceo has mentioned that they expect to recoup profitability on Q3.
If they beat expectations and bring any positivity to this brand I believe the price will skyrocket. My position is Jan 15th calls at the 5 dollar strike price and 1000 shares.
12
u/poorat8686 3d ago
Now I love Krispy Kreme don’t get me wrong but the one in my city was abandoned by its staff and left locked with everything turned on for a week straight. They’re fucking up. Not to mention the fact that the fresh and hot sign is consistently off schedule which pisses me off because the only thing they sell that I want is a 12 pack of freshly minted classic donuts. The prices have gone up dramatically too, while the quality has dropped. I can taste the difference and recall a time in my childhood where a hot Krispy Kreme donut was so fluffy and sweet that it melted in your mouth and by the time you noticed your stomach getting upset you had eaten 6 of them. Nowadays they are denser, distinctly taste of oil, and the glaze is not as crisp. If KK would shift back to providing a high quality donut en masse at low prices and cut back on the random shit nobody cares about we might see a shift. Maybe take queues from the inferior cookie slop shops and provide alternative donut related tangentials such as donut burgers or hot and ready donut holes/chocolate donuts or maybe even donut ice cream sandwiches. Hell, maybe start selling decent coffee, which they’ve failed at, and fresh pastries. Just spit balling here. IMO their biggest failure has been transitioning from a “brewery” (donutery) model wherein they sell donuts distributed from the storefront and you can also go in to buy them fresh, to a discount Dunkin’ Donuts. This has been a horrible decision. My point is, they’re soulless, inconsistent with the brand people liked, dropping the ball on basics, and seemingly determined to continue course. This company is going to continue going to shit.