Krispy Kreme Stock (DNUT) Tests $4.70 on Japan Operations Sale

Krispy Kreme's stock price (NASDAQ:DNUT) is attempting to breach the $4.70 resistance level following the announcement of an agreement to sell its Japan operations to Unison Capital. The transaction, valued at approximately $65 million, is contingent on the fiscal year 2025 financial results for Japan.

The anticipated proceeds are slated for debt reduction after accounting for transaction-related fees and expenses, with the deal expected to close in the first quarter of 2026.

Price Targets

Following the news, DNUT shares have moved up to the $4.70 level in the pre-market, 1.28% higher on the session after a 4.04% gain on Thursday. The brand currently operates 89 locations and nearly 300 fresh delivery points across major Japanese cities such as Tokyo and Osaka.

The divestiture is part of Krispy Kreme's broader turnaround strategy, initiated in August 2025, which focuses on refranchising international markets to improve financial flexibility and reduce debt. This move aligns with the company's efforts to streamline its operations and prioritize core markets. The sale of its Japan operations follows the sale of its remaining stake in Insomnia Cookies for $75 million in June 2025, with proceeds also earmarked for debt reduction. Krispy Kreme’s debt load currently stands at approximately $1.46 billion.

Market analysts are cautiously optimistic about Krispy Kreme's strategic shift, with a consensus rating of “Hold” and an average 1-year price target of $5.51. This reflects a balanced view, acknowledging the potential benefits of debt reduction while considering the challenges of restructuring and the competitive landscape.

The stock's year-to-date performance shows a decline of 52.31%, reflecting the challenges the company has faced during the first quarter of the year. With DNUT having fallen an alarming 71% into May 9th, the reversal from that point has been steady.

Ultimately, the sale of the Japan operations and the subsequent debt reduction efforts are aimed at improving Krispy Kreme's financial health and positioning it for future growth. Today's price action reflects markets’ initial cautious optimism of this strategic move, with an eye toward how it will impact the company's long-term prospects.