Down 65% in 2025, Should You Buy the Dip in Krispy Kreme Stock?

Popular donut chain Krispy Kreme (DNUT) snagged a seat at the meme stock table earlier this summer, popping more than 25% in a single trading day in mid-July.

The rally had little to do with business performance and everything to do with viral momentum, as retail traders on Reddit (RDDT) and X declared the stock’s ticker “simple, catchy, and instantly memeable.” That mix of internet buzz and nostalgia was enough to ignite a buying spree. As with many meme-stock surges, the move was powered more by crowd psychology than company fundamentals.

Now, the buzz has all but died away, leaving DNUT shares down more than 65% in the year to date. Is this an opportunity to snag a yummy treat at a discount, or should you stay far away from Krispy Kreme here?

Charlotte-based Krispy Kreme has become a household name among donut lovers worldwide. Best known for its melt-in-your-mouth Original Glazed doughnut, the company now operates in over 40 countries. Whether through local shops, grocery store partnerships, or its growing digital reach, Krispy Kreme continues to find new ways to deliver its treats to nearly 18,000 locations worldwide. The company’s market capitalization currently stands at about $607 million.

However, even with all the love for its donuts, Krispy Kreme’s stock has been losing its shine. As economic uncertainty weighs on wallets, many consumers are trimming back on non-essentials, including indulgent pick-me-ups like donuts and coffee. The dip in sales, combined with the end of its partnership with McDonald’s (MCD) in June, has only added to the pressure.

The company’s struggles are reflected in its price action. It’s been a rocky road for Krispy Kreme stock, with DNUT tumbling 70% over the past year and shedding nearly 67% year-to-date (YTD).

Back in May, Krispy Kreme’s fiscal 2025 first-quarter earnings report disappointed investors, triggering a sharp 24.7% selloff on May 8. Revenue came in at $375.2 million, down 15.3% from the previous year and falling short of the consensus estimate of $381.2 million. In Q2, revenue of $379.8 million was down 13.8% year over year, continuing the pain.