Krispy Kreme, Inc. (DNUT) shares plunged 7.89% in pre-market trading on Tuesday, following the company's disappointing fourth-quarter earnings release. The doughnut chain's stock is set to open lower after missing analysts' expectations on both revenue and profitability metrics.
For the fourth quarter, Krispy Kreme reported revenue of $404 million, falling short of the consensus estimate of $415.5 million. The company's adjusted EBITDA margin came in at 11.4%, while adjusted EBITDA stood at $45.9 million, significantly below the expected $59 million. Additionally, Krispy Kreme reported an adjusted net income of $1.2 million, well below the estimated $16.5 million.
The miss on key financial metrics is likely to weigh on investor sentiment, as the company struggles to meet expectations in a challenging economic environment. Analysts will closely monitor Krispy Kreme's performance and guidance in the coming quarters to assess the company's ability to regain its footing in the competitive doughnut market.
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