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Krispy KremeDNUT -2.28%55 Degree of Operating Leverage is 19.56 as of Jun. 2026. GuruFocus rates DNUT with a GF Score™ of 55/100 and a GF Value™ of $7.02 (Possible Value Trap). The stock has 3 warning signs investors should review. Among 310 Retail - Defensive companies, Krispy Kreme ranks worse than 91.29% on this metric.
Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue.
Krispy Kreme's Degree of Operating Leverage for the quarter that ended in Jun. 2026 was 19.56. The higher Degree of Operating Leverage, the higher operating risk the company will take.
The industry rank for Krispy Kreme's Degree of Operating Leverage or its related term are showing as below:
DNUT's Degree of Operating Leverage is ranked worse than 91.29% of 310
companies
in the Retail - Defensive industry
Industry Median: 0.715
vs DNUT: 19.56
Krispy Kreme (NAS:DNUT) Degree of Operating Leverage Explanation
Degree of Operating Leverage (DOL) is a leverage ratio that measures the sensitivity of a company’s operting income, also referred to as Earnings Before Interest and Taxes (EBIT), to fluctuations in its Revenue. DOL is a method used to quantify a company’s operating risk. This risk is related to the company's structure of variable costs and fixed costs. Since the fixed costs do not allow the company to adjust the operating costs, the operating risk rises with a higher fixed-to-variable costs proportion.
A high Degree of Operating Leverage indicates that the company’s fixed costs exceed its variable costs. By increasing the sales, the company can earn more profits. In addition, the company must be able to maintain relatively high sales to cover all fixed costs.
Be Aware
The use of operating leverage varies across different industries and business sectors, and the application of Degree of Operating Leverage (DOL) should be adjusted accordingly.
Krispy Kreme Degree of Operating Leverage Related Terms
Krispy Kreme Degree of Operating Leverage Historical Data
* Premium members only.
The historical data trend for Krispy Kreme's Degree of Operating Leverage can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
DNUT vs NGVC, VLGEA, YSWY: Degree of Operating Leverage Comparison
For the Grocery Stores subindustry, Krispy Kreme's Degree of Operating Leverage, along with its competitors' market caps and Degree of Operating Leverage data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Krispy Kreme Degree of Operating Leverage vs Retail - Defensive Industry
For the Retail - Defensive industry and Consumer Defensive sector, Krispy Kreme's Degree of Operating Leverage distribution charts can be found below:
* The bar in red indicates where Krispy Kreme's Degree of Operating Leverage falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
** TTM data of EBIT and Revenue was used to calculate Degree of Operating Leverage.
*** Please be aware that the Degree of Operating Leverage calculations are based on company-level data using the primary share class. The calculated data provided is for demonstration purposes and may slightly differ from the results displayed in the title due to potential variations caused by currency exchange rate differences throughout the year.
What does a Degree of Operating Leverage of 19.56 mean?
Krispy Kreme (DNUT) has a Degree of Operating Leverage of 19.56 as of Jun. 2026. Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. View historical data for Krispy Kreme and its competitors. According to the industry distribution chart, Krispy Kreme ranks #283 out of 310 companies in the Retail - Defensive industry, placing it in the top 91.3%.
Is Krispy Kreme's Degree of Operating Leverage too high?
Krispy Kreme's current Degree of Operating Leverage is 19.56. The Retail - Defensive industry median Degree of Operating Leverage is 0.72. Krispy Kreme's value of 19.56 is 2635.7% above this industry median. Based on the distribution chart, Krispy Kreme ranks #283 out of 310 companies in the Retail - Defensive industry, which is in the bottom quartile relative to peers. Overall, Krispy Kreme has a GF Score™ of 55/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does Krispy Kreme's Degree of Operating Leverage compare to NGVC and VLGEA?
According to the Retail - Defensive industry distribution chart, Krispy Kreme ranks #283 out of 310 companies for Degree of Operating Leverage. This places Krispy Kreme in the lower half of its industry. The industry median Degree of Operating Leverage is 0.72. Krispy Kreme's value of 19.56 is 2635.7% above this benchmark. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Degree of Operating Leverage for a Retail - Defensive company?
The median Degree of Operating Leverage among Retail - Defensive companies is 0.72, based on 310 companies in the industry. Companies in the top quartile (top 25%) have a Degree of Operating Leverage significantly above this median, while those in the bottom quartile fall well below. However, Degree of Operating Leverage should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Krispy Kreme's current Degree of Operating Leverage of 19.56 is 2635.7% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Degree of Operating Leverage mean?
A high Degree of Operating Leverage can signal that a stock is expensive relative to its fundamentals. Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. View historical data for Krispy Kreme and its competitors. For the Retail - Defensive industry, the median Degree of Operating Leverage is 0.72 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Krispy Kreme's current Degree of Operating Leverage is 19.56. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Krispy Kreme stock overvalued right now?
Based on GuruFocus' analysis, Krispy Kreme (DNUT) is currently considered Possible Value Trap. The stock's GF Value™ is $7.02, compared to a current price of $3.22 — trading 54.2% below its estimated fair value. The current Degree of Operating Leverage is 19.56 and 2635.7% above the Retail - Defensive industry median of 0.72. Krispy Kreme's overall GF Score™ is 55/100 with 3 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Degree of Operating Leverage calculated?
Degree of Operating Leverage is calculated from a company's financial statements. For Krispy Kreme (DNUT), the current Degree of Operating Leverage is 19.56 as of Jun. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Krispy Kreme (DNUT) Overvalued in 2026?
Based on GuruFocus' analysis, Krispy Kreme stock appears to be undervalued.
The current stock price of $3.22 is trading 54.2% below its estimated GF Value™ of $7.02.
GuruFocus considers Krispy Kreme to be Possible Value Trap.
Key valuation signals for DNUT:
Degree of Operating Leverage: 19.56
GF Value™: $7.02 vs. price of $3.22 (54.2% below fair value)
Industry Position: 2635.7% above the Retail - Defensive median (#283 of 310)
No single metric tells the full story. See the DNUT stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Krispy Kreme Inc is a sweet-treat brand company. The company's Original Glazed doughnut is recognized for its hot-off-the-line, melt-in-mouth experience. It operates through its network of fresh Doughnut Shops, partnerships with retailers, and a growing e-commerce and delivery business. The company conducts its business through the following three reported segments: U.S., which includes all operations in the United States; International, which includes operations in the U.K., Ireland, Australia, New Zealand, Canada, Japan, and Mexico; and Market Development, which includes franchise operations world-wide. It derives maximum revenue from the U.S. segment.
55GF Score
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