Krispy Kreme(Dnut) Financials: Return On Equity Compared To Industry Average, Plus Other Key Ratios

Profitability Trend (Last 5 Years)

Profitability - return on equity

This chart shows the historical trend of return on equity for DNUT compared to its industry average over the recent years.

Ratio Definition and Interpretation

Name: Return on Equity (ROE)

Definition: ROE shows how much profit the company earns for its shareholders based on their invested equity. It’s one of the most watched profitability ratios. A consistently high ROE signals strong management and efficient use of shareholder capital. But artificially high ROE may sometimes be boosted by excessive debt.

Interpretation:
• In '2021', DNUT's return on equity was -2.0%, measuring profitability for shareholders. Industry average for Food Chains in '2021' stood at -37.4%.
• In '2022', DNUT's return on equity was -1.3%, measuring profitability for shareholders. The increase since '2021' reflects strengthening financial performance. Industry average for Food Chains in '2022' stood at 21.0%. Industry average increased by 58.4% compared to previous year.
• In '2023', DNUT's return on equity was -3.2%, measuring profitability for shareholders. The decline from '2022' may indicate some operational or financial challenges. Industry average for Food Chains in '2023' stood at 7.7%. Industry average declined by 13.2% from previous year.
• In '2024', DNUT's return on equity was 0.3%, measuring profitability for shareholders. The increase since '2023' reflects strengthening financial performance. Industry average for Food Chains in '2024' stood at -5.8%. Industry average declined by 13.5% from previous year.
Overall, DNUT's return on equity has been volatile but showed an upward trend over the past 4 years.

Formula: ROE = Net Income / Shareholders' Equity

Good Range: 10%-20% desirable for many industries.