11 Best Coffee Stocks to Buy Now

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

Number of Hedge Fund Holders: 14

Krispy Kreme, Inc. (NASDAQ:DNUT) specializes in donuts, coffee, espresso drinks, chillers, and iced beverages. Its operations are divided into the following segments: US and Canada, International, and Market Development.

The company delivered solid 2024 results, reporting 21% revenue growth. It expanded its US-delivery fresh daily network and surpassed $250 million in sales for the first time through this channel. It now operates in 40 countries worldwide and has an established pipeline of franchise market growth.

On February 26, Analyst Bill Chappell of Truist Financial maintained a Buy rating on Krispy Kreme, Inc. (NASDAQ:DNUT), with a price target of $12.00. He said that the rating is due to various factors that suggest potential growth for the company, despite recent challenges. Its guidance for organic sales growth is positive, around 5% to 7%.

According to the analyst, the expansion of Krispy Kreme, Inc.’s (NASDAQ:DNUT) partnership with McDonald’s is a significant revenue growth driver, as it aims to reach 6,000 by the end of 2025. In addition, the analyst estimates the company’s strategic move to expand its retail operations into major outlets such as Target, Costco, and Walmart to boost sales growth over the coming years.

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