Among the major publicly traded companies, it’s tough to find an enterprise that suffered a worse Thursday session than Krispy Kreme (DNUT). After providing some culinary solace during the doldrums of the COVID-19 pandemic, the brand is struggling for traction amid pressures colliding against the consumer economy; namely, an improving but still stubbornly high inflation rate. However, stakeholders of DNUT stock probably couldn’t have anticipated what just happened.
Following a rather disappointing (but not outright awful) earnings disclosure for the second quarter of 2023, investors couldn’t get out of DNUT stock soon enough. When the smoke finally cleared, shares lost almost 14% of equity value. To be fair, on a year-to-date basis, DNUT is up 19%, which stands a bit better than the performance of the benchmark S&P 500. Unfortunately, the technical posture right now screams sell.
