Krispy Kreme Doughnuts (KKD) and Its Rivals Critical Contrast

Krispy Kreme Doughnuts (NYSE: KKD) is one of 20 public companies in the “Food Retail & Distribution” industry, but how does it contrast to its competitors? We will compare Krispy Kreme Doughnuts to related companies based on the strength of its risk, valuation, analyst recommendations, profitability, dividends, institutional ownership and earnings.

Volatility & Risk

Krispy Kreme Doughnuts has a beta of 1.52, suggesting that its stock price is 52% more volatile than the S&P 500. Comparatively, Krispy Kreme Doughnuts’ competitors have a beta of 0.98, suggesting that their average stock price is 2% less volatile than the S&P 500.

Profitability

This table compares Krispy Kreme Doughnuts and its competitors’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Krispy Kreme Doughnuts 6.90% 15.58% 11.41%
Krispy Kreme Doughnuts Competitors 0.98% 6.68% 4.14%

Valuation and Earnings

This table compares Krispy Kreme Doughnuts and its competitors gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Net Income Price/Earnings Ratio
Krispy Kreme Doughnuts N/A N/A 44.68
Krispy Kreme Doughnuts Competitors $21.17 billion $332.40 million 481.04

Krispy Kreme Doughnuts’ competitors have higher revenue and earnings than Krispy Kreme Doughnuts. Krispy Kreme Doughnuts is trading at a lower price-to-earnings ratio than its competitors, indicating that it is currently more affordable than other companies in its industry.

Analyst Ratings

This is a breakdown of recent recommendations for Krispy Kreme Doughnuts and its competitors, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Krispy Kreme Doughnuts 0 0 0 0 N/A
Krispy Kreme Doughnuts Competitors 602 1258 1193 21 2.21

As a group, “Food Retail & Distribution” companies have a potential upside of 7.36%. Given Krispy Kreme Doughnuts’ competitors higher probable upside, analysts plainly believe Krispy Kreme Doughnuts has less favorable growth aspects than its competitors.

Insider & Institutional Ownership

68.8% of shares of all “Food Retail & Distribution” companies are held by institutional investors. 14.2% of shares of all “Food Retail & Distribution” companies are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

About Krispy Kreme Doughnuts

Krispy Kreme Doughnuts, Inc. is a retailer and wholesaler of doughnuts, complementary beverages, and treats and packaged sweets. The Company’s principal business includes owning and franchising Krispy Kreme stores, at which a range of doughnuts, including the Company’s Original Glazed doughnut, together with complementary products, including an array of coffees and other beverages. The Company operates through four business segments: Company Stores, Domestic Franchise, International Franchise and KK Supply Chain. The Company Stores segment includes the doughnut shops operated by the Company. The Domestic Franchise segment consists of the Company’s domestic store franchise operations and the licensing of Krispy Kreme products domestically. The International Franchise segment consists of the Company’s international store franchise operations. The KK Supply Chain segment produces doughnut mixes and manufactures doughnut-making equipment.

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