Krispy Kreme (NASDAQ:DNUT) shares are in the spotlight today as the doughnut producer has begun exploring strategic alternatives for its Insomnia Cookies chain, with the aim of unlocking value for the Insomnia platform.
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In an effort to expand its digital footprint, Krispy Kreme acquired a majority stake in Insomnia Cookies in 2018. The platform’s top line has tripled since 2017 and is expected to reach $230 million in Fiscal year 2023.
Over the years, Krispy Kreme has expanded its presence into 37 countries with nearly 13,000 access points. The decision to seek alternatives for Insomnia will allow Krispy Kreme to focus on its core strategy, centered around doughnuts. Importantly, potential alternatives also include an all-cash sale of the platform.
What Is the Target Price for DNUT?
Overall, the Street has a consensus price target of $16.64 for Krispy Kreme, along with a Moderate Buy consensus rating. Today’s announcement comes after a nearly 20% slide in DNUT shares over the past six months.
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