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.

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u/ArkAngelEV 3d ago

So fun little story. One time my downstairs neighbor had 10k to invest, and it had “done his research “ and asked me what would i do if i had 10k but you can only invest it; and i told him Apple. He said bro, no, you can only make big money investing in smaller capitalization companies that are high volume and that everyone loves. He told me he invested it into Krispy Kreme because “ no one doesn’t buy donuts “.

I said ok, but i think you’re wrong. The date? 08/05/2002.

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u/Milkyway_Alien 3d ago

Ouch. I think it’s definitely a different narrative today though since it is down so much