Krispy Kreme (DNUT) & The Competition Head-To-Head Analysis

Krispy Kreme (NASDAQ:DNUT) is one of 382 public companies in the “Hotels, Restaurants & Leisure” industry, but how does it contrast to its peers? We will compare Krispy Kreme to similar businesses based on the strength of its risk, analyst recommendations, institutional ownership, profitability, earnings, valuation and dividends.

Analyst Ratings

This is a breakdown of current recommendations for Krispy Kreme and its peers, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Krispy Kreme	3	0	1	0	1.50
Krispy Kreme Competitors	3776	17139	25367	899	2.50

Krispy Kreme currently has a consensus price target of $4.33, indicating a potential upside of 42.08%. As a group, “Hotels, Restaurants & Leisure” companies have a potential upside of 62.60%. Given Krispy Kreme’s peers stronger consensus rating and higher possible upside, analysts clearly believe Krispy Kreme has less favorable growth aspects than its peers.

Profitability

This table compares Krispy Kreme and its peers’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Krispy Kreme	-6.16%	-1.17%	-0.31%
Krispy Kreme Competitors	2.25%	-42.24%	2.07%

Dividends

Krispy Kreme pays an annual dividend of $0.14 per share and has a dividend yield of 4.6%. Krispy Kreme pays out -25.0% of its earnings in the form of a dividend. As a group, “Hotels, Restaurants & Leisure” companies pay a dividend yield of 3.3% and pay out 37.8% of their earnings in the form of a dividend. Krispy Kreme is clearly a better dividend stock than its peers, given its higher yield and lower payout ratio.

Earnings and Valuation

This table compares Krispy Kreme and its peers gross revenue, earnings per share and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Krispy Kreme	$1.47 billion	-$515.77 million	-5.45
Krispy Kreme Competitors	$3.53 billion	$247.14 million	-162.43

Krispy Kreme’s peers have higher revenue and earnings than Krispy Kreme. Krispy Kreme is trading at a higher price-to-earnings ratio than its peers, indicating that it is currently more expensive than other companies in its industry.

Insider & Institutional Ownership

81.7% of Krispy Kreme shares are owned by institutional investors. Comparatively, 48.6% of shares of all “Hotels, Restaurants & Leisure” companies are owned by institutional investors. 1.6% of Krispy Kreme shares are owned by company insiders. Comparatively, 22.2% of shares of all “Hotels, Restaurants & Leisure” companies are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Volatility & Risk

Krispy Kreme has a beta of 1.25, indicating that its stock price is 25% more volatile than the S&P 500. Comparatively, Krispy Kreme’s peers have a beta of 1.62, indicating that their average stock price is 62% more volatile than the S&P 500.

Summary

Krispy Kreme peers beat Krispy Kreme on 10 of the 15 factors compared.

About Krispy Kreme

Krispy Kreme, Inc., together with its subsidiaries, produces doughnuts in the United States, the United Kingdom, Ireland, Australia, New Zealand, Mexico, Canada, Japan, and internationally. The company operates through three segments: U.S., International, and Market Development. The company offers doughnut experiences through hot light theater and fresh shops, delivered fresh daily branded cabinets and merchandising units within grocery and convenience stores, quick service restaurants, club memberships, drug stores, and ecommerce, as well as through its branded sweet treat line comprising Krispy Kreme branded sweet treats. It also provides cookies under the Insomnia Cookies brand, cookie cakes, ice cream, cookie-wiches, and brownies; and operates Krispy Kreme company-owned shops and franchise shops. The company was formerly known as Krispy Kreme Doughnuts, Inc. and changed its name to Krispy Kreme, Inc. in May 2021. Krispy Kreme, Inc. was founded in 1937 and is based in Charlotte, North Carolina.