Financial Analysis: Krispy Kreme Doughnuts (KKD) vs. Its Rivals

Krispy Kreme Doughnuts (NYSE: KKD) is one of 21 public companies in the “Food Retail & Distribution” industry, but how does it compare to its competitors? We will compare Krispy Kreme Doughnuts to similar businesses based on the strength of its institutional ownership, risk, profitability, dividends, analyst recommendations, valuation and earnings.

Earnings and Valuation

This table compares Krispy Kreme Doughnuts and its competitors top-line revenue, earnings per share 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 593.55

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.

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 1.05% 7.41% 4.31%

Institutional and Insider Ownership

62.0% of shares of all “Food Retail & Distribution” companies are owned by institutional investors. 12.8% of shares of all “Food Retail & Distribution” companies are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Analyst Recommendations

This is a summary of current recommendations and price targets for Krispy Kreme Doughnuts and its competitors, 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 650 1357 1413 23 2.23

As a group, “Food Retail & Distribution” companies have a potential upside of 4.55%. Given Krispy Kreme Doughnuts’ competitors higher probable upside, analysts clearly believe Krispy Kreme Doughnuts has less favorable growth aspects than its competitors.

Volatility and Risk

Krispy Kreme Doughnuts has a beta of 1.52, indicating that its share price is 52% more volatile than the S&P 500. Comparatively, Krispy Kreme Doughnuts’ competitors have a beta of 1.02, indicating that their average share price is 2% more volatile than the S&P 500.

Summary

Krispy Kreme Doughnuts competitors 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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