Here’s Why Krispy Kreme (DNUT) Declined in Q4

Baron Funds, an investment management company, released its “Baron Focused Growth Fund” fourth quarter 2022 investor letter. A copy of the same can be downloaded here. In the fourth quarter, the fund (Institutional Shares) decreased by 4.52%, compared to a 4.72% rise for the Russell 2500 Growth Index and a 7.56% increase for the S&P 500 Index. For the full year, the fund trailed the primary benchmark the Russell 2500 Growth index and declined 28.14%. In addition, please check the fund’s top five holdings to know its best picks in 2022.

Baron Focused Growth Fund highlighted stocks like Krispy Kreme, Inc. (NASDAQ:DNUT) in the Q4 2022 investor letter. Headquartered in Charlotte, North Carolina, Krispy Kreme, Inc. (NASDAQ:DNUT) has an omnichannel business model that serves doughnuts and coffee. On March 3, 2023, Krispy Kreme, Inc. (NASDAQ:DNUT) stock closed at $13.50 per share. One-month return of Krispy Kreme, Inc. (NASDAQ:DNUT) was 5.39%, and its shares lost 7.41% of their value over the last 52 weeks. Krispy Kreme, Inc. (NASDAQ:DNUT) has a market capitalization of $2.27 billion.

Baron Focused Growth Fund made the following comment about Krispy Kreme, Inc. (NASDAQ:DNUT) in its Q4 2022 investor letter:

“Krispy Kreme, Inc. (NASDAQ:DNUT) is a manufacturer and retailer of branded fresh doughnuts and packaged sweet treats sold through an omni-channel model in the U.S. and abroad. Despite initial gains following third quarter earnings results, shares fell after the company’s Investor Day. While generally positive, management highlighted the negative impact of inflation, FX headwinds, and the U.K. macro environment on near-term performance. We see opportunity for growth and margin expansion as Krispy Kreme optimizes its hub and spoke model and view these challenges as temporary.”

Photo by Ben Dutton on Unsplash

Krispy Kreme, Inc. (NASDAQ:DNUT) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 11 hedge fund portfolios held Krispy Kreme, Inc. (NASDAQ:DNUT) at the end of the fourth quarter which was 7 in the previous quarter.

We discussed Krispy Kreme, Inc. (NASDAQ:DNUT) in another article and shared Baron Fund’s views on the company in the previous quarter. In addition, please check out our hedge fund investor letters Q4 2022 page for more investor letters from hedge funds and other leading investors.

Suggested Articles:

• 12 Most Profitable Mid-Cap Stocks Now
• 15 Biggest Payment Companies in the World
• 25 Most Profitable Companies in the World

Disclosure: None. This article is originally published at Insider Monkey.