Shares of Krispy Kreme Inc. (NASDAQ: DNUT) plunged more than 28% on Thursday after the doughnut-and-coffee chain said it will no longer pay out its quarterly dividend, and that it was “reassessing” the deployment of its planned McDonald's rollout and fell short of earnings expectations, according to Bloomberg.
Krispy Kreme is pausing its nationwide rollout with McDonald's after sales slowed below its projections. Krispy Kreme shares have shed more than 70% of their value over the last year.
McDonalds released its earnings report for the first quarter of 2025 early this morning. According to the report, U.S. comparable sales decreased by 3.6% from the previous year, primarily driven by reduced guest counts.
McDonald's stock remains a hold due to ongoing traffic issues and declining revenues, despite aggressive expansion plans and marketing initiatives. Q1 2025 earnings showed a 1% global sales decline and a 3.6% drop in U.S. sales, marking the fourth poor quarter in a row. In this article, I go over the latest earnings report and explain why the stock is currently trading at a lofty valuation.
McDonald's second-quarter same-store sales fell to their lowest levels in five years. Diners are cutting back on visits to the chain, including at breakfast time.
McDonald's Corporation (NYSE:MCD ) Q1 2025 Earnings Conference Call May 1, 2025 8:30 AM ET Company Participants Dexter Congbalay - VP, IR Chris Kempczinski - Chairman & CEO Ian Borden - CFO Conference Call Participants Dennis Geiger - UBS David Palmer - Evercore David Tarantino - Baird Brian Harbour - Morgan Stanley Andrew Charles - TD Cowen Sara Senatore - Bank of America Jon Tower - Citi John...
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