Analyzing Krispy Kreme Doughnuts (NYSE:KKD) & Its Peers

Krispy Kreme Doughnuts (NYSE: KKD) is one of 22 publicly-traded companies in the “Food Retail & Distribution” industry, but how does it compare to its peers? We will compare Krispy Kreme Doughnuts to related companies based on the strength of its profitability, valuation, institutional ownership, analyst recommendations, earnings, risk and dividends.

Analyst Ratings

This is a breakdown of recent ratings and target prices for Krispy Kreme Doughnuts and its peers, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Krispy Kreme Doughnuts 0 0 0 0 N/A
Krispy Kreme Doughnuts Competitors 652 1372 1426 25 2.24

As a group, “Food Retail & Distribution” companies have a potential upside of 6.35%. Given Krispy Kreme Doughnuts’ peers higher possible upside, analysts clearly believe Krispy Kreme Doughnuts has less favorable growth aspects than its peers.

Risk & Volatility

Krispy Kreme Doughnuts has a beta of 1.52, indicating that its stock price is 52% more volatile than the S&P 500. Comparatively, Krispy Kreme Doughnuts’ peers have a beta of 1.04, indicating that their average stock price is 4% more volatile than the S&P 500.

Profitability

This table compares Krispy Kreme Doughnuts and its peers’ 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 1.01% 7.34% 4.27%

Institutional & Insider Ownership

68.5% 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 insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Valuation and Earnings

This table compares Krispy Kreme Doughnuts and its peers 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 562.30

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

Summary

Krispy Kreme Doughnuts peers beat Krispy Kreme Doughnuts on 5 of the 9 factors compared.

Krispy Kreme Doughnuts Company Profile

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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