Krispy Kreme, Inc. — Earnings Quality Grade F
DNUT · Consumer Defensive
Major red flags
Screening Summary
Management Signals
Financial Trends
Revenue & Net Income ($B)
Margins (%)
18-Point Screening
Revenue Quality
DSO 13 days, change +1 days YoY
AR outpaced revenue for 2 consecutive years
Revenue -8.6%, CFFO -26.0%. Cash follows revenue
Expense Quality
Inventory -4.5% vs COGS -8.9%. Normal
CapEx growth -18.9% vs revenue -8.6%. Normal
SG&A/Gross Profit = 23.6%, excellent (<30%)
Gross margin 75.5%, change +0.1pp. Stable
Cash Flow Quality
CFFO/NI = -0.07. Below 1.0
FCF is negative ($-0.1B)
Accruals ratio = -21.2%. Low accruals
Cash $0.0B covers only 3% of debt $1.4B
Balance Sheet Health
Goodwill+Intangibles $1.5B = 232% of equity. Over 50%
Interest coverage = -0.5x (<2x). Financial stress
Other assets grew 128.9% vs revenue -8.6%
No write-off data
Acquisition Risk
FCF after acquisitions negative for 3 years
Small-cap context: A single acquisition on a small balance sheet can trip serial-acquirer logic.
Goodwill+Intangibles change -19% YoY. Normal
Manipulation Score
M-Score = -3.59 (< -2.22). Unlikely manipulator
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Beneish M-Score
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Generated from public financial data using forensic accounting frameworks. Not investment advice. Data: Yahoo Finance · 2026-04-25