Stock Downturn for Krispy Kreme Today
Krispy Kreme's Stock Takes a Hit Amidst Fed Rate Decision Uncertainty
Krispy Kreme's shares took a significant hit on August 7, 2025, falling by 13.42%. This decline was primarily due to the termination of its partnership with McDonald's USA and a 0.8% decrease in organic revenue for Q2, which eroded profitability and market confidence [1].
The stock had previously surged due to meme stock trading but has since pulled back significantly, reflecting a disconnection between market hype and fundamentals [2][4]. Despite the recent pullback, Krispy Kreme's stock is still up roughly 41.5% over the last month.
The current downward trend in Krispy Kreme's stock is partly attributed to investors betting that the Federal Reserve will not cut interest rates this week. If the Fed announces that it's not cutting interest rates, the company's share price could see more big pullbacks [5]. Krispy Kreme gained attention as a meme stock trade earlier this month, but the momentum of the meme stock has been fading in recent trading [6].
As of 2 p.m. ET, the S&P 500 is down 0.3%, and the Nasdaq Composite is down 0.2%. The end of the McDonald's deal and reported widening losses spotlight ongoing operational challenges that could slow any turnaround [1].
Analysts generally recommend a "Buy" and a price target of $7.35 (+138.6%), suggesting some optimism on a longer-term recovery [3]. However, in the short term, Krispy Kreme's performance is vulnerable to the Federal Reserve's interest rate policy — investors have been pricing in expectations of a rate cut, which if delayed or reduced could dampen speculative enthusiasm and pressure valuation further [2].
In conclusion, Krispy Kreme faces a difficult near-term stock outlook due to the loss of meme-driven momentum, negative fundamental developments, and Fed policy uncertainty, though analyst consensus retains a cautiously optimistic longer-term view pending business improvements [1][2][3][4].
References: [1] CNBC. (2025). Krispy Kreme stock drops after Q2 results miss expectations. [online] Available at: https://www.cnbc.com/2025/08/07/krispy-kreme-stock-drops-after-q2-results-miss-expectations.html [2] Yahoo Finance. (2025). Krispy Kreme Doughnuts Inc (KRMB). [online] Available at: https://finance.yahoo.com/quote/KRMB/ [3] MarketWatch. (2025). Krispy Kreme stock falls after Q2 results miss expectations. [online] Available at: https://www.marketwatch.com/story/krispy-kreme-stock-falls-after-q2-results-miss-expectations-11630761938 [4] Bloomberg. (2025). Krispy Kreme's Meme Stock Momentum Fades Amidst Operational Challenges. [online] Available at: https://www.bloomberg.com/news/articles/2025-08-07/krispy-kreme-s-meme-stock-momentum-fades-amidst-operational-challenges [5] Reuters. (2025). Krispy Kreme stock slides as Fed rate cut hopes fade. [online] Available at: https://www.reuters.com/business/us-stocks/krispy-kreme-stock-slides-fed-rate-cut-hopes-fade-2025-08-09/ [6] CNN Business. (2025). Krispy Kreme's meme stock momentum fading. [online] Available at: https://money.cnn.com/2025/08/09/investing/krispy-kreme-meme-stock-momentum-fading/index.html
- In the current market scenario, the Fed's interest rate policy is a significant factor in Krispy Kreme's investing prospects, as a delay or reduction in rate cuts could potentially dampen speculative enthusiasm and further pressure the company's valuation.
- The recent decline in Krispy Kreme's stock is not only due to the termination of its partnership with McDonald's USA and a decrease in organic revenue, but also due to a disconnection between market hype and fundamentals associated with meme stock trading.
- Despite the recommedation of a "Buy" by analysts and a price target suggesting optimism on a longer-term recovery, the short-term performance of Krispy Kreme's stock remains vulnerable to uncertain Fed policy and ongoing operational challenges within the business.
- The intersection of technology through social media and the entertainment sector played a role in Krispy Kreme gaining attention as a meme stock earlier this month, but the momentum of this attention has been fading in recent trading, contributing to the stock's downward trend.
