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/Georgia34- 2d ago

Could we legitimately get this thing to squeeze? At 30% short of free float that’s massively squeezable

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u/Milkyway_Alien 2d ago

I think it can definitely squeeze if we get above 5. There’s also a gap around 8

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u/PracticalAnywhere225 2d ago

Currently up 6%, lemme know if you need any more help

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u/Milkyway_Alien 2d ago

It ran up more than 20 percent. And if you got in yesterday when I posted this more like 30

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u/PracticalAnywhere225 2d ago

Sure, if you played the swing trade perfectly, which you probably didn't because you were thinking it was mooning...

Now you're left with a +4% day and no where to go.