Krispy Kreme's parent company DNUT has been turning heads on Wall Street lately, and I've been watching this sugary stock with growing interest. The doughnut giant seems to be on a roll (no pastry pun intended) as consumer spending bounces back in this post-pandemic economy.
Looking at the numbers, DNUT has climbed to $15.20, up from $13.50 at the start of the quarter - that's a pretty tasty 12.6% increase. Not too shabby for a company selling, well, fried dough with sugar on top!
What's really caught my attention is their international push. They've been aggressively expanding in Asia and Europe, which could be a game-changer as these economies get back on their feet. I visited one of their new London locations last month, and let me tell you - the line was out the door at 10am on a Tuesday.
John Dough (yes, that's his real name - you can't make this stuff up) from Sweet Investment Partners told me yesterday, "DNUT's growth trajectory underscores the brand's resilience and adaptability in a dynamic market environment." A bit corporate-speak, but he's not wrong.
Their online sales platform has been surprisingly robust too. Who knew people would order doughnuts for delivery? Apparently, everyone but me.
The big question for investors is whether they can keep this momentum going. Supply chain issues have hit food retailers hard - flour and sugar costs are up nearly 8% since January - but so far DNUT seems to be handling it well (better than some competitors I could name).
For what it's worth, I think DNUT could be a decent barometer for how the broader retail sector recovers. If people are splurging on doughnuts, that's probably a good sign for consumer confidence, right?
