Is Krispy Kreme (DNUT) A Smart Long-Term Investment Choice?

Baron Growth Fund recently published its third-quarter commentary – a copy of which can be downloaded here. During the third quarter of 2021, the Baron Growth Fund returned 3.63% (institutional shares). In comparison, the benchmark S&P 500 Index was up 0.58%, while the Russell 2000 Growth Index was down 5.65%. You should check out Baron Growth Fund’s top 5 stock picks for investors to buy right now, which could be the biggest winners of 2022.

Baron Growth Fund, in its Q3 2021 investor letter, mentioned Krispy Kreme, Inc. (NASDAQ: DNUT) and discussed its stance on the firm. Krispy Kreme, Inc. is a Charlotte, North Carolina-based doughnut company with a $2.5 billion market capitalization. DNUT delivered a 9.90% return for the past month and it closed at $15.53 per share on December 09, 2021.

Here is what Baron Growth Fund has to say about Krispy Kreme, Inc.  in its Q3 2021 investor letter:

“We also participated in the IPO of Krispy Kreme, Inc., one of the most beloved and well-known sweet treat brands in the world. Krispy Kreme operates in the large, stable, and steadily growing $650 billion global indulgence market. Indulgence foods have proven to be recession resilient, and data indicates that nearly 97% of consumers enjoy indulgences at least occasionally. We believe that Krispy Kreme’s iconic, globally recognized brand with rich history positions it well to meet this growing consumer demand.”

Based on our calculations, Krispy Kreme, Inc. (NASDAQ: DNUT) was not able to clinch a spot in our list of the 30 Most Popular Stocks Among Hedge Funds. DNUT was in 10 hedge fund portfolios at the end of the third quarter of 2021, compared to 0 funds in the previous quarter. Krispy Kreme, Inc. (NASDAQ: DNUT) delivered a 2.70% return in the past 3 months.

Just last month, we published an article about DNUT making it to the 10 Best Stocks to Make Money. You can find more than 100 investor letters from hedge funds and prominent investors on our hedge fund investor letters 2021 Q3 page.

Disclosure: None. This article is originally published at Insider Monkey.