Krispy Kreme, Inc. (DNUT, Financial) is a manufacturer and retailer of branded freshdoughnuts 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.
From Ron Baron (Trades, Portfolio)'s Baron Focused Fund fourth-quarter 2022 letter.
