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Krispy Kreme has the Financial Strength Rank of 3. It displays poor financial strength and is likely in financial distress. Usually this is caused by too much debt for the company.
Warning Sign:
Krispy Kreme Inc displays poor financial strength. Usually, this is caused by too much debt for the company.
GuruFocus Financial Strength Rank measures how strong a company's financial situation is. It is rated on a scale of 1 to 10 and is based on these factors:
1. The debt burden that the company has as measured by its Interest Coverage (current year). The higher, the better.
2. Debt to revenue ratio. The lower, the better.
3. Altman Z-Score.
4. Other debt related ratios.
A higher score indicates a stronger financial position, with companies rated 7 or above considered financially stable and unlikely to face distress. Conversely, a score of 3 or below suggests potential financial difficulties, indicating a higher risk of distress.
Krispy Kreme did not have earnings to cover the interest expense.
Krispy Kreme's debt to revenue ratio for the quarter that ended in Mar. 2026 was 0.87.
As of today, Krispy Kreme's Altman Z-Score is -0.45.
The rank is rated on a scale of 1 to 10. A higher score indicates a stronger financial position, with companies rated 7 or above considered financially stable and unlikely to face distress. Conversely, a score of 3 or below suggests potential financial difficulties, indicating a higher risk of distress.
Krispy Kreme has the Financial Strength Rank of 3. It displays poor financial strength and is likely in financial distress. Usually this is caused by too much debt for the company.
Krispy Kreme Financial Strength Related Terms
DNUT vs YSWY, VLGEA, NGVC: Financial Strength Comparison
For the Grocery Stores subindustry, Krispy Kreme's Financial Strength, along with its competitors' market caps and Financial Strength 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 Financial Strength vs Retail - Defensive Industry
For the Retail - Defensive industry and Consumer Defensive sector, Krispy Kreme's Financial Strength distribution charts can be found below:
* The bar in red indicates where Krispy Kreme's Financial Strength falls into.
Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income (EBIT) by its Interest Expense:
Z-Score model is an accurate forecaster of failure up to two years prior to distress. It can be considered the assessment of the distress of industrial corporations.
The zones of discrimination were as such:
When Z-Score is less than 1.81, it is in Distress Zones.
When Z-Score is greater than 2.99, it is in Safe Zones.
When Z-Score is between 1.81 and 2.99, it is in Grey Zones.
Krispy Kreme has a Z-score of -0.45, indicating it is in Distress Zones. This implies bankrupcy possibility in the next two years.
Warning Sign:
Altman Z-score of -0.45 is in distress zone. This implies bankruptcy possibility in the next two years.
* 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.
Krispy Kreme (DNUT) has a Financial Strength of 3 as of Mar. 2026. The financial strength rank measures the strength of a company's balance sheet based on revenue and debt. View historical data on Krispy Kreme and its competitors. This is 25% below median its historical median of 4.00. Over the past decade, Krispy Kreme's Financial Strength has ranged from 2.00 to 4.00.
Is Krispy Kreme's Financial Strength too high?
Krispy Kreme's current Financial Strength of 3 is 25% below median its 10-year median of 4.00. Over the past 10 years, this metric has ranged from a low of 2.00 to a high of 4.00. 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 Financial Strength compare to YSWY and VLGEA?
Krispy Kreme's Financial Strength of 3 can be compared against companies in the Retail - Defensive industry. Historically, Krispy Kreme's own Financial Strength has ranged from 2.00 to 4.00 over the past decade. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Financial Strength for a Retail - Defensive company?
A good Financial Strength depends on the Retail - Defensive industry context. However, Financial Strength should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Financial Strength mean?
A high Financial Strength can signal that a stock is expensive relative to its fundamentals. The financial strength rank measures the strength of a company's balance sheet based on revenue and debt. View historical data on Krispy Kreme and its competitors. Krispy Kreme's current Financial Strength is 3, which is 25% below median its own 10-year median of 4.00. 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 $8.52, compared to a current price of $3.23 — trading 62.1% below its estimated fair value. The current Financial Strength is 3, which is 25% below median its 10-year median of 4.00. 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 Financial Strength calculated?
Financial Strength is calculated from a company's financial statements. For Krispy Kreme (DNUT), the current Financial Strength is 3 as of Mar. 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 $3.23 is trading 62.1% below its estimated GF Value™ of $8.52.
GuruFocus considers Krispy Kreme to be Possible Value Trap.
Key valuation signals for DNUT:
Financial Strength: 3 (25% below median its 10-year median of 4.00)
GF Value™: $8.52 vs. price of $3.23 (62.1% below fair value)
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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