Understanding DNUT's Dividend Performance and Sustainability
Krispy Kreme Inc (DNUT, Financial) recently announced a dividend of $0.04 per share, payable on 2023-11-09, with the ex-dividend date set for 2023-10-25. 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 delve into Krispy Kreme Inc's dividend performance and assess its sustainability.
What Does Krispy Kreme Inc Do?
Krispy Kreme Inc is a renowned sweet treat brand company. Known for its Original Glazed doughnut, 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 three reported segments: U.S. and Canada, International, and Market Development, which includes franchise operations across the globe, as well as operations in Japan.
A Glimpse at Krispy Kreme Inc's Dividend History
Since 2021, Krispy Kreme Inc has maintained a consistent dividend payment record, with dividends currently being distributed on a quarterly basis. The chart below shows the annual Dividends Per Share for tracking historical trends.
Breaking Down Krispy Kreme Inc's Dividend Yield and Growth
As of today, Krispy Kreme Inc has a 12-month trailing dividend yield of 1.07% and a 12-month forward dividend yield of 1.07%. This suggests an expectation of consistent 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 1.07%.
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, ensuring the availability of funds for future growth and unexpected downturns. As of 2023-06-30, Krispy Kreme Inc's dividend payout ratio is 0.00.
Krispy Kreme Inc's profitability rank is 2 out of 10 as of 2023-06-30, suggesting the dividend may not be sustainable, as the company has reported net profit in 0 years out of the past 10 years.
Growth Metrics: The Future Outlook
Krispy Kreme Inc's growth rank of 2 out of 10 suggests poor growth prospects, indicating the dividend may not be sustainable. However, Krispy Kreme Inc's revenue has increased by approximately 15.00% per year on average, a rate that outperforms approximately 82.01% of global competitors. Furthermore, the company's 3-year EPS growth rate has increased by approximately 24.70% per year on average, outperforming approximately 66.39% of global competitors.
Next Steps
In conclusion, while Krispy Kreme Inc's consistent dividend payments and robust revenue growth are promising, its low profitability and growth ranks, coupled with a lack of net profit in most of the past decade, raise questions about the sustainability of its dividends. Therefore, investors should exercise caution and conduct further research before making investment decisions. GuruFocus Premium users can screen for high-dividend yield stocks using the High Dividend Yield Screener.
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.
