10 Small Cap Stocks with Huge Upside Potential

5. Krispy Kreme, Inc. (NASDAQ:DNUT)

Upside Potential: 129%

Market Capitalization: $851.5 million

Krispy Kreme, Inc. (NASDAQ:DNUT) is an American multinational retailer and wholesaler of a variety of doughnuts, including glazed, iced, and filled doughnuts. The giant also offers beverages and ice creams, along with catering and delivery services across the United States, Asia, and Europe. The company is focused on delivering the most awesome doughnuts on the planet daily. It is one of the best stocks with the biggest upside.

Ever since the partnership with fast food giant McDonald’s Corporation broke the news, the stock has been of interest to many investors. As per its recent earnings report, Krispy Kreme, Inc. (NASDAQ:DNUT)’s Points of Access (“PoAs”) grew around 34% year-over-year during the last quarter of FY2024 and 59% over a span of two years, standing at 9,951 within the U.S. alone. By FY2026, the company aims to reach as high as 15,000 PoAs, with McDonald’s hosting around 40%.

Not only this, Krispy Kreme, Inc. (NASDAQ:DNUT) has made significant advancements in recent years, from divesting a majority stake in Insomnia Cookies to expanding with national distribution partners. Joshua Charlesworth, the President and CEO of DNUT, made the following comment in this regard:

“In 2025, we expect to continue our U.S. expansion with national partners, both existing and new. For example, Costco. An added benefit of this expansion with national partners is the opportunity to identify and close existing underperforming doors, which we expect to do in 2025.”

This statement is reinforced by the company’s expansion to Brazil in partnership with Ipiranga’s AmPm, using a capital-light franchise strategy. This collaboration is seen as a key step forward in what could be a sweet spot in the market. Considering this, analysts have one-year price targets of $17.50 and $6 on the higher and lower ends, respectively. This makes it a stock with the biggest upside potential.