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Stock impact report

3 Restaurant Stocks Walking a Fine Line [Yahoo! Finance]

Krispy Kreme, Inc. (DNUT) 
Company Research Source: Yahoo! Finance
thanks to perishable ingredients, labor shortages, or volatile consumer spending. Unfortunately, these factors have spelled trouble for the industry as it has shed 3.9% over the past six months. This performance was discouraging since the S&P 500 held its ground. Investors should tread carefully as any operational misstep or unforeseen change in preferences can have you catching a falling knife. On that note, here are three restaurant stocks we're passing on. Market Cap: $921.7 million Famous for its Original Glazed doughnuts and parent company of Insomnia Cookies, Krispy Kreme (NASDAQ:DNUT) is one of the most beloved and well-known fast-food chains in the world. Why Does DNUT Give Us Pause? Cash burn makes us question whether it can achieve sustainable long-term growth Below-average returns on capital indicate management struggled to find compelling investment opportunities, and its falling returns suggest its earlier profit pools are drying up Depletion of cash reserve Show less Read more
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