Ok, go with me here.
Krispy Kreme’s stock has been downgraded due to the potential impact of GLP-1 weight loss drugs on donut sales. These drugs make patients feel fuller faster and eat less food, which could affect Krispy Kreme’s sales. The uncertainty surrounding the impact of these drugs on overall food consumption has led to the downgrade. Investors are concerned about the potential revenue decline and sales growth deceleration.
While it might seem that it’s simply a donut story – mmmm, donuts – there’s something more here.
While we’re all focused on tech… we should consider the effects of market changes on end customers of another kind of technology, pharmaceuticals. There’s a theory I’m considering about the change in purchase habits of consumers as weight loss drugs continue their uptake. How many businesses will be changed by a change in food consumption? From healthcare to restaurants, to food production lines, to shipping companies, to marketing firms, there’s a lot tied up in food. A 2022 study links 29% of American jobs to food.
Businesses might need to adapt to new data analytics tools to understand these shifts, or cloud infrastructure might need to scale differently. Recognizing these broader trends can help MSPs anticipate the needs of their clients, offering proactive solutions before a potential crisis hits.
And the market just adjusted one stock due to this. It won’t the last. I just wanted to observe it here.