Latest news with #426
TimesLIVE
11-07-2025
- Automotive
- TimesLIVE
Tesla marks formal India entry with Mumbai launch event
Tesla will open its first India showroom in Mumbai next week, having imported $1m (R17.82m) worth of cars and merchandise, marking its entry into the world's third-largest car market despite CEO Elon Musk's complaints about high import tariffs. In an invitation to media late on Thursday, the carmaker said the July 15 event was the 'launch of Tesla in India through the opening of the Tesla experience centre at Bandra Kurla Complex' in the city's leading commercial business district. Grappling with excess manufacturing capacity at its other factories and falling sales, Tesla has pivoted to selling imported cars in India on which it will need to pay about 70% import duty and other levies. Commercially available customs records from January to June showed Tesla imported vehicles, chargers and accessories into India worth close to $1m, mainly from China and the US. The vehicles included six of Tesla's best-selling Model Y at a shipment value of $32,500 (R579,426) each for five cars and $46,000 (R820,110) for the long-range version, as well as several Superchargers.
Yahoo
15-05-2025
- Business
- Yahoo
Is Krispy Kreme Stock a Buy, Sell, or Hold in 2025?
Shares of Krispy Kreme fell sharply as its first-quarter earnings missed Wall Street estimates. The company announced the suspension of its regular quarterly dividend to address declining sales and a large balance sheet debt position. Without a clear turnaround in sight, Krispy Kreme stock may remain highly volatile. 10 stocks we like better than Krispy Kreme › Krispy Kreme (NASDAQ: DNUT) has left shareholders with a glazed-over look of disappointment. As of this writing, the stock has crumbled by a disastrous 69% year to date amid a string of weaker-than-expected financial results. The donut-making giant is struggling with sliding demand and several setbacks in its global expansion strategy. The headline numbers are far from tempting, but this level of extreme volatility can sometimes offer investors the chance to snag a sweet deal, assuming the company can turn things around. Founded 87 years ago, Krispy Kreme didn't invent the doughnut, but the company has managed to stand out through its iconic "Original Glazed" recipe. Its stores feature a unique factory-like open kitchen concept, where customers are drawn in by the "Hot Light" spectacle, signaling fresh doughnuts hot off the line that cascade through a sugary waterfall. Krispy Kreme has translated that success into an innovative hub-and-spoke operating model, where its stores serve as production centers to supply retail partners, including grocery and convenience stores. Today, Krispy Kreme has 426 hubs internationally, servicing 17,982 global points of access (POAs). Despite its devout worldwide following, Krispy Kreme may have become a victim of its success, now facing the pitfalls of a rapid expansion strategy and struggling to maintain consistent quality and operational efficiency. The latest trends underscore deeply rooted structural challenges. In the first quarter, net revenue of $375.2 million fell by 15.3% year over year, alongside an adjusted net loss of $0.05 per share, reversing the profit of $0.07 in the same quarter last year. While some of that decline was due to the company's divestiture of its Insomnia Cookies group last year, more concerning was the 2.6% decline in organic revenue from U.S. operations. Sales per hub internationally are down 1% over the past year. All this occurs even as global points of access increased by 21.2%, reflecting a distribution deal with McDonald's announced last year that now features Krispy Kreme doughnuts at 2,400 U.S. locations. Unfortunately, demand has been below expectations, with the added costs pressuring the companywide financial performance. Management has acknowledged consumer spending softness and a shifting sales channel mix, emphasizing a need to refocus on core strengths. However, Krispy Kreme's strained balance sheet, with $993 million in debt and a net leverage ratio of 6.1, severely constrains its ability to tackle these issues quickly. The suspension of its regular dividend to prioritize debt reduction further undermines investor confidence. Those skeptical of Krispy Kreme's near-term recovery prospects have ample reasons to sell or steer clear of the stock for now. When looking at Krispy Kreme as an investment, one silver lining to consider is that following the deep stock price sell-off, the bulk of its near-term challenges may have already been priced into the stock by the market. The stock is trading at a price-to-sales (P/S) ratio of just 0.3, which reflects a deeply discounted business that may still have some underlying value. The company still needs to rectify its falling sales, but its outlook is backed by a storied brand and distinct market positioning. Amid a reset of expectations, signs of operating and financial progress over the next few quarters could be the catalyst needed for the stock to get back on track. Krispy Kreme's plan to improve its financial positioning by fixing its balance sheet and correcting its cost structure could ultimately pay off in creating value for shareholders. Investors convinced that the company's weakness is only temporary might consider the latest sell-off as a buy-the-dip opportunity to hold for the long run. Given the uncertainties surrounding Krispy Kreme's timetable for a sustained earnings recovery, caution is warranted. For existing shareholders, it seems too late to sell the stock, considering the possibility of a rebound, while the prudent move for new investors is to simply avoid it. There doesn't appear to be a quick turnaround in sight, and I predict the stock will remain volatile. 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Is Krispy Kreme Stock a Buy, Sell, or Hold in 2025? was originally published by The Motley Fool Sign in to access your portfolio
