Krispy Kreme Inc's Dividend Analysis
Assessing Krispy Kreme Inc's Dividend Sustainability and Growth Prospects
Krispy Kreme Inc (NASDAQ:DNUT) recently announced a dividend of $0.04 per share, payable on 2024-02-07, with the ex-dividend date set for 2024-01-23. As investors look forward to this upcoming payment, the spotlight also shines on the company's dividend history, yield, and growth rates. Using the data from GuruFocus, let's look into Krispy Kreme Inc's dividend performance and assess its sustainability.
What Does Krispy Kreme Inc Do?
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Krispy Kreme Inc is a sweet treat brands company. The company's Original Glazed doughnut is recognized for its hot-off-the-line, melt-in-your-mouth experience. It operates in 30 countries through its network of fresh Doughnut Shops, partnerships with retailers, and a growing ecommerce and delivery business. The company conducts its business through the following three reported segments namely U.S. and Canada, includes all operations in the U.S. and Canada, Insomnia Cookies shops, and the Branded Sweet Treat Line; International includes operations in the U.K., Ireland, Australia, New Zealand, and Mexico; and Market Development includes franchise operations across the globe, as well as operations in Japan.
A Glimpse at Krispy Kreme Inc's Dividend History
Krispy Kreme Inc has maintained a consistent dividend payment record since 2021. Dividends are currently distributed on a quarterly basis. Below is a chart showing annual Dividends Per Share for tracking historical trends.
Breaking Down Krispy Kreme Inc's Dividend Yield and Growth
As of today, Krispy Kreme Inc currently has a 12-month trailing dividend yield of 1.01% and a 12-month forward dividend yield of 1.01%. This suggests an expectation of same dividend payments over the next 12 months. Based on Krispy Kreme Inc's dividend yield and five-year growth rate, the 5-year yield on cost of Krispy Kreme Inc stock as of today is approximately 1.01%.
The Sustainability Question: Payout Ratio and Profitability
To assess the sustainability of the dividend, one needs to evaluate the company's payout ratio. The dividend payout ratio provides insights into the portion of earnings the company distributes as dividends. A lower ratio suggests that the company retains a significant part of its earnings, thereby ensuring the availability of funds for future growth and unexpected downturns. As of 2023-09-30, Krispy Kreme Inc's dividend payout ratio is 0.00. Krispy Kreme Inc's profitability rank, offers an understanding of the company's earnings prowess relative to its peers. GuruFocus ranks Krispy Kreme Inc's profitability 3 out of 10 as of 2023-09-30, suggesting the dividend may not be sustainable. The company has reported net profit in 0 years out of the past 10 years.
Growth Metrics: The Future Outlook
To ensure the sustainability of dividends, a company must have robust growth metrics. Krispy Kreme Inc's growth rank of 3 out of 10 suggests that the company has poor growth prospects and thus, the dividend may not be sustainable. Revenue is the lifeblood of any company, and Krispy Kreme Inc's revenue per share, combined with the 3-year revenue growth rate, indicates a strong revenue model. Krispy Kreme Inc's revenue has increased by approximately 15.00% per year on average, a rate that outperforms approximately 82.39% of global competitors. The company's 3-year EPS growth rate showcases its capability to grow its earnings, a critical component for sustaining dividends in the long run. During the past three years, Krispy Kreme Inc's earnings increased by approximately 24.70% per year on average, a rate that outperforms approximately 68.57% of global competitors.
Engaging Conclusion: Krispy Kreme Inc's Dividend Outlook
In conclusion, while Krispy Kreme Inc's dividend yield appears modest, the company's payout ratio, profitability rank, and growth metrics present a mixed picture regarding the sustainability of its dividends. A deeper dive into the financials and future prospects is essential for investors considering Krispy Kreme Inc for its dividend payments. With a careful analysis of dividend growth rate, payout ratio, profitability, and growth metrics, investors can make more informed decisions. Will Krispy Kreme Inc's sweet offerings translate into a sweeter dividend future? GuruFocus Premium users can screen for high-dividend yield stocks using the High Dividend Yield Screener to explore further investment opportunities.
This article, generated by GuruFocus, is designed to provide general insights and is not tailored financial advice. Our commentary is rooted in historical data and analyst projections, utilizing an impartial methodology, and is not intended to serve as specific investment guidance. It does not formulate a recommendation to purchase or divest any stock and does not consider individual investment objectives or financial circumstances. Our objective is to deliver long-term, fundamental data-driven analysis. Be aware that our analysis might not incorporate the most recent, price-sensitive company announcements or qualitative information. GuruFocus holds no position in the stocks mentioned herein.
This article first appeared on GuruFocus.
