Truist says Krispy Kreme’s Insomnia announcement unlikely to enhance value

Truist keeps a Buy rating and $20 price target on Krispy Kreme after the company announced it is seeking strategic alternatives for its Insomnia Cookies to “unlock shareholder value” and focus on its core strategy of producing, selling and distributing fresh doughnuts daily. The firm states however that while it continues to like the core Krispy Kreme investment story and its ability to take share of the indulgent snack category over the next few years, it also does not see how the announcement will meaningfully improve the core business or enhance shareholder value for the company.