Krispy Kreme Declares Quarterly Dividend

Rhea-AI Summary

Krispy Kreme, Inc. (NASDAQ:DNUT) declares a quarterly cash dividend of $0.035 per share of common stock, in line with the Company’s dividend policy. The dividend was announced on February 8, 2024, and will be distributed on May 8, 2024, to shareholders of record on April 24, 2024.

Insights

Financial Analyst

The declaration of a quarterly cash dividend by Krispy Kreme represents a direct financial incentive to shareholders and is indicative of the company's current liquidity and profit distribution strategy. The dividend yield, calculated by dividing the annual dividends per share by the stock's price per share, is a critical metric for income-focused investors. Although the dividend amount of $0.035 per share may seem modest, it is essential to consider it in the context of the company's overall financial health, payout ratio and historical dividend patterns.

The payout ratio, which measures the proportion of earnings paid out as dividends, can provide insights into Krispy Kreme's long-term sustainability. If the ratio is too high, it may suggest that the company is not reinvesting enough in growth opportunities. Conversely, a lower ratio could indicate a conservative approach, potentially signaling room for future dividend increases. Stakeholders should also consider the consistency of dividend payments, as irregularities could signal financial instability.

Market Research Analyst

Dividend announcements can have a psychological impact on the stock market, often being interpreted as a sign of corporate confidence. For a consumer discretionary company like Krispy Kreme, this can reflect management's belief in stable cash flows despite market volatility. It is also important to analyze the dividend's impact on investor sentiment, particularly for retail investors who may favor companies with a regular dividend policy.

Additionally, the announcement's timing, ahead of the ex-dividend date, allows investors to make informed decisions regarding their portfolio. For instance, those seeking dividend income might be drawn to the stock, while others might evaluate the opportunity cost of investing for dividends versus potential capital gains. The market's reaction will also depend on how the announced dividend aligns with industry norms, as well as the company's performance relative to its peers.

CHARLOTTE, N.C.--(BUSINESS WIRE)-- The Board of Directors of Krispy Kreme, Inc. (NASDAQ:DNUT) (“Krispy Kreme” or the “Company”), today announced a quarterly cash dividend of $0.035 per share of common stock, in accordance with the Company’s dividend policy. The dividend was declared today, February 8, 2024, and will be paid on May 8, 2024 to shareholders of record on April 24, 2024.

About Krispy Kreme, Inc.

Headquartered in Charlotte, N.C., Krispy Kreme is one of the most beloved and well-known sweet treat brands in the world. Our iconic Original Glazed® doughnut is universally recognized for its hot-off-the-line, melt-in-your-mouth experience. Krispy Kreme operates in more than 35 countries through its unique network of fresh doughnut shops, partnerships with leading retailers, and a rapidly growing Ecommerce and delivery business with more than 13,000 fresh points of access. Our purpose of touching and enhancing lives through the joy that is Krispy Kreme guides how we operate every day and is reflected in the love we have for our people, our communities and the planet. Connect with Krispy Kreme Doughnuts at www.KrispyKreme.com, or on one of its many social media channels, including www.Facebook.com/KrispyKreme and www.Twitter.com/KrispyKreme.

View source version on businesswire.com: https://www.businesswire.com/news/home/20240208462401/en/

Investor Relations

Stephanie Daukus

IR@krispykreme.com

Financial Media

Edelman Smithfield for Krispy Kreme, Inc.

KrispyKremeIR@edelman.com

Source: Krispy Kreme, Inc.

FAQ

What is the quarterly cash dividend declared by Krispy Kreme, Inc. (NASDAQ:DNUT)?

Krispy Kreme, Inc. (NASDAQ:DNUT) declared a quarterly cash dividend of $0.035 per share of common stock.

When will the declared dividend be paid to shareholders of Krispy Kreme, Inc. (NASDAQ:DNUT)?

The dividend declared on February 8, 2024, will be paid on May 8, 2024, to shareholders of record on April 24, 2024.