Why Krispy Kreme Stock on Friday Pigeons 16%

After publishing its first-quarter results Thursday morning, investors have gone from Krispy Kreme (NASDAQ: dnut) in stock.

On Friday, it was clear that analysts also found the stocks to be annoying, too. Donut Slinger's stock price eroded again after two expert prices fell, falling more than 16% on Friday. at the same time, S&P 500 (snpindex: ^gspc) The transactions on the day were basically flat.

Before the market opened that day, Evercore Isi Analyst David Palmer has launched an updated attack on Krispy Kreme. He changed his target to $3 per share, given his previous level of $9. However, he did not change his advice to the troubled Comestibles company, as he still rated it as a tandem (in other words).

Image source: Getty Images.

Palmer reportedly listed some disturbing factors in his latest Krispy Kreme shoot. The company's agreement with fast food king McDonald's It's one (Krispy Kreme has been suspended for the moment), and the continued weakness of the general retail industry in the United States should affect donut manufacturers - which has brought it to about 30% of its revenue from these stores.

Citigroup As analyst Jon Tower lowered the fair value assessment of the stock, he also lowered expectations for Krispy Kreme. He believes that the value today is $3.60 more than the previous target of $4.75. But like his Evercore Isi Peer, Tower also keeps its neutral advice on stocks.

The food industry is tough because it is susceptible to weaknesses in consumer sentiment and is often dependent on trends. I can't see any trends that prefer Krispy Kreme, McDonald's is in a frustrating situation. I can't blame any investors for avoiding this stock now.

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