Krispy Kreme share price drops on worries weight-loss drug will hit doughnut demand

The boom in weight-loss drugs has made analysts less certain on makers of sugary snacks.

US doughnut chain Krispy Kreme has a growing number of outlets in Ireland. Picture: Cian O'Regan.

Krispy Kreme Inc might still be a popular choice for doughnut lovers, but the boom in weight-loss drugs like Ozempic and Wegovy has one Wall Street firm warning investors about the stock.

Truist Securities downgraded shares from 'buy' to 'hold' and cut the price target from $20 to $13, citing the uncertain impact of drugs known as GLP-1s on packaged food snacks. Analysts led by Bill Chappell expect the overhang will not fade for six to 12 months, “if not longer.”