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Posted by
Two Blokes May 8 -
Filed in
Stock
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3 views
Krispy Kreme's shares have plummeted by over 60%, and despite the drop, the stock's valuation remains high at 79.7x Fwd P/E, raising solvency concerns. The partnership with McDonald's has underperformed, leading to a pause in expansion plans, which significantly impacted investor confidence and share prices. Krispy Kreme's financial health is precarious with nearly $1 billion in debt and a net leverage ratio of 6.1x, risking potential covenant breaches.
