Krispy Kreme, Inc. (DNUT, Financial) is a manufacturer and retailer of branded freshdoughnuts and packaged sweet treats sold through an omni-channel model in the U.S. and abroad. Shares declined following earnings that missed consensus, driven by the challenging macroeconomic environment, negative consumer sentiment in the U.K., and increased labor and commodity costs due to foreign exchange headwinds as a result of the strong U.S. dollar. We view these challenges as temporary and see opportunity for growth and margin expansion as Krispy Kreme broadens its unique hub-and-spoke business model.
From Ron Baron (Trades, Portfolio)'s Baron Focused Growth Fund third-quarter 2022 commentary.
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