Krispy Kreme jumps after Truist Securities upgrades to 'buy' on McDonald's tie-up
10/06/2024 16:55
(Updates)
** Shares of doughnut chain Krispy Kreme DNUT.O rise as
much as 7.3% to $11.37, set for their best day since March 26
** Truist Securities upgrades stock to "buy" from "hold",
citing strength in recent partnership with McDonald's MCD.N ;
also raises PT to $15 from $13
** National rollout of Krispy Kreme doughnuts with MCD will
lead to retailers such as Walmart expanding availability and
reaching more customers, says brokerage
** "The partnership will accelerate revenue growth of legacy
business in the next few quarters, well before the MCD rollout
is complete" - Truist
** Says DNUT's business of selling doughnuts in "dozens" for
offices, birthday parties is more sheltered from the impact of
GLP-1 drugs than other areas of indulgent sweets category
** Of the 10 analysts covering DNUT stock, seven rate "buy"
or higher, three "hold"; median PT is $16 - LSEG data
** Including session moves, stock down ~26% YTD
(Reporting by Savyata Mishra and Jaiveer Singh Shekhawat in
Bengaluru)
((JaiveerSingh.Shekhawat@thomsonreuters.com))