Krispy Kreme’s stock gets downgraded as analyst says weight-loss drugs could hurt donut sales

• Krispy Kreme stock was downgraded due to the growing popularity of GLP-1 weight loss drugs.
• Patients taking GLP-1 drugs like Ozempic, Wegovy, and Mounjaro feel fuller faster and eat less food.
• Krispy Kreme “will be stuck in a holding pattern… as the initial impact of GLP-1 use becomes more apparent,” Truist said.

The growing popularity of GLP-1 weight loss drugs is poised to weigh down food stocks going forward, according to Truist Securities.

Krispy Kreme stock was downgraded to “Hold” from “Buy” at Truist Securities on Monday because investors have little clarity as how exactly the company’s future sales will be impacted by GLP-1 drugs like Ozempic, Wegovy, and Mounjaro.