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Krispy Kreme cuts revenue outlook after earnings miss

Yahoo Finance's Brad Smith and Brian Sozzi discuss Krispy Kreme quarterly earnings.

Video Transcript

BRIAN SOZZI: All right, last but not least, here are shares of Krispy Kreme in focus after a not-so-sweet quarter. The company missing estimates and slashing its full-year net revenue forecast for 2022. Stock under a lot of pressure out of the gate here, Brad.

Krispy Kreme did warn on profits versus its prior expectations several months ago, calling out various levels of inflation, but somewhat masking, I would argue, a pretty good sales quarter from Krispy Kreme. Soft growth in US, Canada, some strong growth internationally continued that strong theme within the fast food players of strong growth in key emerging markets. So a win for Krispy Kreme there, but looks like the stock is going to trade off that earnings miss in that lowered forecast.

BRAD SMITH: The company has got to get a new ticker symbol. We got to talk to them about that a little later on. As we--

BRIAN SOZZI: I think it used to be-- what was it? DNUT? That's DNUT now, but it used to be KKD I think.

BRAD SMITH: That's what I thought. Yeah. But, anyway, as we think about the taste profile of the consumer right now, too--

BRIAN SOZZI: That's good.

BRAD SMITH: It's important to note that for Krispy Kreme, many consumers right now for the taste profile are looking for less sugar. And not just for less sugar, I mean, it's cutting out some of the fatty foods that we've historically just leaned into. Now I don't know. If you're anything like me, I lean further into these comfort foods during-- I think since, like, 2016, I've leaned further into the comfort foods.

And so Krispy Kreme, even as we have a couple of them sitting outside the set right now, I can't wait to get my hands on them. But the consumers out there right now, one of the major trends that we were tracking across retail and consumer taste buds and profiles was that they were looking for less sugar. That could be one of the near-term headwinds for Krispy Kreme.

But they also offer a major kind of, like, hub and spoke delivery model as well. And that's where the logistical element comes into play, ensuring that you are still seeing sales tick higher from some of those channel partners where you're getting the spoke out for some of the delivered-- what is it? Driven delivered fresh, or something like that?

BRIAN SOZZI: Are you quietly asking for a gluten-free, non-sugar donut from Mike Tattersfield?


BRIAN SOZZI: I mean, he's going to be on soon.

BRAD SMITH: I don't need a gluten-free one.

BRIAN SOZZI: No gluten-free.


BRIAN SOZZI: Sugar-free.

BRAD SMITH: I mean, just inject the-- just give me a syringe and inject the sugar into me.

BRIAN SOZZI: Well, just go to their website. Go to the website. It is pumpkin spice bonanza there right on their website. It is huge.

BRAD SMITH: OK, can we just PSA?

BRIAN SOZZI: Go. I just wanted to-- I just wanted to get him going.

BRAD SMITH: It is August 17. Why is there so much PSL everywhere?

BRIAN SOZZI: I agree. I agree. Let's take that clip. Let's get on social media. Thanks so much, guys. Appreciate it.