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Krispy Kreme Shares Sink on JPMorgan Downgrade to 'Underweight'

1. JPMorgan downgraded Krispy Kreme to 'underweight' on turnaround challenges. 2. Shares fell over 60% this year; current price at $3.73. 3. Turnaround plan execution risks are high, impacting profitability. 4. Krispy Kreme ended partnership with McDonald's, hindering growth. 5. Analysts highlight reduced appeal of donuts due to delivery issues.

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FAQ

Why Very Bearish?

The downgrade by JPMorgan and significant share drop indicate weak market confidence, reminiscent of past downgrades affecting stock prices.

How important is it?

The downgrade and operational challenges directly impact investor sentiment and future profitability, making the article highly relevant.

Why Short Term?

Immediate effects will be felt as market adjusts to the downgrade; longer-term recovery may depend on successful turnaround execution.

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