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Stock impact report

3 Cash-Burning Stocks We Approach with Caution [Yahoo! Finance]

Krispy Kreme, Inc. (DNUT) 
Company Research Source: Yahoo! Finance
Not all companies are worth the risk, and that's why we built StockStory - to help you spot the red flags. That said, here are three cash-burning companies to steer clear of and a few better alternatives. Trailing 12-Month Free Cash Flow Margin: -6.4% Famous for its Original Glazed doughnuts and parent company of Insomnia Cookies, Krispy Kreme (NASDAQ:DNUT) is one of the most beloved and well-known fast-food chains in the world. Why Is DNUT Risky? Earnings per share have dipped by 28.6% annually over the past four years, which is concerning because stock prices follow EPS over the long term Cash-burning history makes us doubt the long-term viability of its business model Limited cash reserves may force the company to seek unfavorable financing terms that could dilute shareholders Krispy Kreme's stock price of $3.15 implies a valuation ratio of 14.5x forward EV-to-EBITDA. Check out our free in-depth research report to learn more about why DNUT doesn't pass our bar Trai Show less Read more
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