Krispy Kreme Downgraded on Worry Ozempic Will Hit Demand
- Analyst cuts rating on doughnut company to hold from buy
- Overhang from GLP-1s expected to last up to a year, or longer
The boom in weight-loss drugs has made analysts less certain on makers of sugary snacks.
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Krispy Kreme Inc. might still be a popular choice for doughnut lovers, but the boom in weight-loss drugs like Ozempic and Wegovy has one Wall Street firm warning investors about the stock.
Truist Securities downgraded shares to hold from buy and cut the price target to $13 from $20, citing the uncertain impact of drugs known as GLP-1s on packaged food snacks. Analysts led by Bill Chappell expect the overhang will not fade for six to 12 months, “if not longer.”