Krispy Kreme Stock Drops as Chart Indicates Possible Gap FillKey Levels to Watch [Video]

Krispy Kreme (DNUT) shares slid 6.6% on Monday, continuing their recent fall after soaring nearly 40% in late March on news McDonald’s (MCD) plans to sell the company’s donuts at its restaurants nationwide by the end of 2026, increasing the possibility of a “fill the gap” event on the stock’s chart.

Despite the recent share price weakness, investment bank Piper Sandler upgraded Krispy Kreme’s stock on Friday to “overweight” from “neutral” and lifted its price target to $20, up from $14, representing 40% upside from Monday’s close of $14.32. The bank sees the partnership as a “game changer.”

“We’d expect to see the narrative around Krispy Kreme start to improve from here.” Piper Sandler analyst Brian Mullan wrote in a report cited by Barron’s.

Krispy Kreme, which sells treats through its nearly 400 independent stores as well as in grocery and quick service chains, …