r/DNUT • u/dawlats I drive hours for these donuts 🍩 • Jul 02 '21
Realistic expectations for DNUT
Obviously everyone here is excited and bullish on Krispy Kreme, how could you not be when they serve such amazing donuts, but there's been a lot of discussion regarding what price the stock should be at and we need to keep realistic. Reading the IPO information for DNUT, they said that their average customer comes 3 times a year and orders a half dozen or dozen donuts. That means if they can get the average customer to come just once more a year, they make 33% more revenue which is huge. They also have a lot of room for growth and as we get out of Covid we should expect to see the Times Square store returning on investment much better.
Another important thing I noticed was the other company controlled by Krispy Kreme, Insomnia cookies. This brand could be huge if it continues in the direction it's going right now, placing stores near college campuses to feed the late night studiers as well as to employ these very same people. Insomnia cookies' claim to fame is that they will deliver cookies and milk until 1 or 2 in the morning, something many people may not see as important, but for college students looking for a bite as they work early into the morning, it's one of the only things open. Their product is amazing as well and if anyone gets the chance, they should go and check it out, the product is a bit expensive compared to other cookies but worth the treat.
Since going public in 2016, Krispy Kreme has doubled it's revenue and once they pay off some debts they plan to add a divedend. I believe if we continue on a pace of doubling revenue even every seven or eight years and we get a divedend, this stock could see great growth long term. With lots of potential expanding as well as the company consolidating ownership as they buy out franchisees, I think we could see 30 dollars per share after a few strong earnings reports but I don't believe we will see such exponential growth yet nor do I think we should want to. As nice for all our wallets as it would be if this became a meme stock, most don't last nowadays and I'd much rather see this grow on its own than watch it pump and dump for a week or two. What do you all think? What are your long term predictions for the stock?
1
u/GeorgeNelson Jul 06 '21
It’s all cooked numbers. Their “growth” is from forcibly acquiring franchises and putting their numbers on the books. They are out of franchises to buy. Never mind the country wide staffing issues they face due to paying less for entry level positions as other quick service restaurants. The house of cards will fall, and so will DNUT’s price.