How to buy and short Krispy Kreme shares

How to buy Krispy Kreme shares: investing or trading

You can buy Krispy Kreme shares through outright investing in the stock, which gives you direct ownership, or you can trade the company’s shares by speculating on its price movements without having to own the underlying.

Investing in Krispy Kreme shares

Investing in Krispy Kreme’s shares means that you become its owner. As a shareholder you’ll have voting rights and be eligible to receive dividends, if the company offers them. We enable you to get direct ownership of Krispy Kreme shares from zero commission.¹

With us, you can follow these steps if you want to be a Krispy Kreme shareholder:

1. Create an account or log in
2. Search for ‘Krispy Kreme’ on our share trading platform
3. Select ‘buy’ in the deal ticket
4. Choose the number of shares you want to buy
5. Open and monitor your investment position

Here’s a comparison between our commission rates and our competitors’:

Buying Krispy Kreme shares outright means that you need to commit the full investment value upfront. The share price can swing in either direction, so you may get back a lesser amount than your initial outlay – but your maximum potential losses can’t exceed your total investment amount (excluding additional fees).

You can profit if Krispy Kreme happens to offer dividends or if you sell your shares at an increased share price (compared to the one you bought them at), or both.

Trading Krispy Kreme stock

Trading Krispy Kreme stock means that you’re taking a position on the company’s share price, whether it’ll rise or fall, without having direct ownership of the underlying. You’d ‘buy’ (go long) if you think that the share price will rise and you’d ‘sell’ (go short) if your prediction is that it’ll fall.

We enable you to trade Krispy Kreme shares in these steps:

1. Create an account or log in
2. Search for ‘Krispy Kreme’ on our trading platform
3. Select ‘buy’ to go long or ‘sell’ to go short in the deal ticket
4. Set your position size and take steps to manage your risk
5. Open and monitor your position

With us, you’ll trade Krispy Kreme shares using leveraged derivatives such as CFDs, with possible tax benefits.²

Using leverage when trading means that you only need a small deposit, known as margin, to open your positions, while getting full exposure. Leverage increases both your possible profits and losses to the full value of the trade, so it’s important to take steps to manage your risk properly.

See our full trading costs and charges

How to short Krispy Kreme shares

You can short Krispy Kreme shares via CFD trading with us. Short-selling means that you’re taking a ‘selling’ position (going short) on a company’s shares in an effort to make a profit from a falling share price.

With us, you can short-sell in these steps:

1. Create an account or log in
2. Search for ‘Krispy Kreme’ on our platform
3. Select ‘sell’ in the deal ticket
4. Choose your position size
5. Open and monitor your position

Naturally, the share price could go either way – therefore, you’d incur a loss if it rises when you’re short-selling. But if your prediction that it’ll fall is correct, you’d make a profit.

As you’d be using CFDs when short-selling, you’d be trading with leverage. So, you’d need to commit an initial deposit to get full exposure to your selected position size of Krispy Kreme shares. But remember, when trading with leverage, both possible profits and losses are increased to the full value of your trade.

Find out more about short-selling

How to sell or close your Krispy Kreme position

You can sell your Krispy Kreme investment or close your trading position if you want to limit potential losses or secure possible profits. Here’s how:

A brief history of Krispy Kreme

Krispy Kreme was established in the US in 1937, when its owner, Vernon Carver Rudolph, decided to target a larger market having already been in the doughnut business for about four years.

In the 1950s, improvements were made to the production process – the doughnut cutting process became mechanised. The company started using automatic cutters instead of cutting them by hand.

Another innovative development in production came about in 1962, when air pressure extrusion replaced the automatic cutters.

After Rudolph’s passing in 1973, the company became a subsidiary of Beatrice Foods Company.

The company opened its first international store in Canada in 2001. Before this, among other things, the company went public in 2000 – it returned to private ownership in 2016, then listed again in July 2021.

What’s the Krispy Kreme business model?

The Krispy Kreme business model is based on its production and sales of doughnuts. In addition to retail and wholesale sales to retail partners, and franchising its stores, the company also sells coffee and sweets.

Krispy Kreme share price: how to analyse the Krispy Kreme share price

You can analyse Krispy Kreme shares in one of two ways – technical or fundamental analysis – but a combination of the two is generally more effective.

• Technical analysis consists of chart patterns, technical indicators and historical price action that is useful in predicting future price movements
• Fundamental analysis takes elements such as a company’s net revenue, profit and loss statements, as well as wider macroeconomic factors into consideration – these can help you determine likely share price movements

Footnotes:

¹ Commission rates differ for UK and US shares. Trade in your share trading account three or more times in the previous month to qualify for our best commission rates. Please note published rates are valid up to £25,000 notional value. See our full list of share trading charges and fees.
² Tax laws are subject to change and depend on individual circumstances. Tax law may differ in a jurisdiction other than the UK.