krispy kreme inc stands to reap the benefits of its deals to sell doughnuts via retail giants walmart inc target corp and fastfood chain mcdonald’s corp say analysts the doughnut maker beat analysts’ top line and bottom line estimates in its firstquarter results thursday krispy kreme’s stock dnut ended thursday’s session up 1 outpacing the sp 500 index’s spx decline of 02 the company’s shares are up 33 friday in a conference call to discuss the results thursday krispy kreme’s chief operating officer john charlesworth explained that the company is strengthening its links with walmart and target krispy kreme is also about six weeks into a test to sell doughnuts via mcdonald’s according to ceo mike tattersfield the mcdonald’s test is taking place at over 160 of the fast food chain’s restaurants in kentucky related krispy kreme stock rises on q1 beat fueled by insomnia cookies and ecommerce “for a ‘mcd door’ we see potential up to 40 margin to dnut from each store although the probability of a national rollout is still ambitious” wrote jp morgan analyst john ivankoe in a note released friday “mcdonalds is currently engaging in its own ‘demand planning’ in the 160 store ky market test meaning the stores orderown the product at the back door meaning no returns are accepted” mcdonald’s is a 13446 store business in the us and if krispy kreme was even 2 of the brand’s us sales this would translate to around 500 million of wholesale sales at krispy kreme assuming a 50 margin according to ivankoe a 30 margin would be equivalent to around 150 million of wholesale sales he added jp morgan raised its krispy kreme price target to 17 from 13 “the company seems to be honing in on a ‘doughnut logistics’ strategy which involves revolving growth around existing ‘hubs with spokes’ assets to drive both revenue growth and incremental margin on top” wrote ivankoe truist securities also feels that partner deals bode well for sales of krispy kreme’s dozen packs “we continue to believe the more trialspartnerships dnut can create will accelerate the trial of the fresh doughnut offering improve the perception of the products and help drive future sales of dozens” wrote truist securities analyst bill chappell in a note released thursday citing good momentum in the partnership with mcdonald’s and the recently announced deal with target chappell explained that the tests provide “halo impacts” more than “a cannibalization effect” opinion wendy’s chili will soon be sold in stores but can it measure up to the dinein dish a “halo effect” occurs when sales of one product boost sales of another “all in we continue to believe the company is one of the few consumer staples companies that can continue to drive consistent strong topline growth through the year” wrote chappell the analyst firm maintained its buy rating and 20 price target for krispy kreme shares of krispy kreme have risen 52 in 2023 outpacing the sp 500 index’s gain of 76