Krispy Kreme (DNUT) surged 34% this week after the company announced a new plan to expand its donut distribution nationwide through McDonald’s by the end of 2026. The announcement came alongside stronger-than-expected earnings and triggered a sudden wave of retail investor enthusiasm. That momentum placed Krispy Kreme at the center of a new meme-stock movement, grouped with names like Opendoor, Rocket Lab, and Kohl’s in what some traders are calling the DORKs.

Krispy Kreme reported improved margins in Q2 and revealed a multi-year agreement to roll out donuts at McDonald’s locations across the U.S. The news sent daily trading volume soaring to nearly five times the average, as investors reacted to both the partnership and the company’s updated guidance. Analysts also pointed to growing short interest in DNUT prior to the rally, suggesting that a short squeeze may have accelerated the price jump.

Opendoor, Rocket Lab, and Kohl’s also posted gains this week. All three have been trending in retail trading forums, attracting momentum-driven investors regardless of their underlying fundamentals.

The meme-stock trend has never fully disappeared, but it has been relatively quiet since the initial surge of 2021. That appears to be changing. A wave of renewed risk appetite is sweeping the market, helped by falling inflation, stronger crypto markets, and the ongoing tech rally. Traders are once again chasing high-volatility names, and the DORKs have become a new focal point.

Krispy Kreme’s inclusion in this group reflects its blend of strong brand recognition and limited institutional coverage. Most of the DORK stocks share similar traits: high short interest, low analyst ratings, and wide recognition among retail traders. These conditions are ideal for fast, sentiment-driven moves.

While the McDonald’s expansion could be a long-term growth driver, most analysts remain cautious. “Krispy Kreme still faces challenges with input costs and operational efficiency. The McDonald’s deal is promising, but execution will be key,” said an analyst at Piper Sandler.

Others warn that retail-fueled rallies often unwind as quickly as they begin, particularly when not backed by consistent financial performance.

Investors will be looking closely at how quickly Krispy Kreme can roll out its McDonald’s initiative, and whether it can scale without compromising product quality or margins. Success could provide a much-needed growth catalyst. Failure could turn the current excitement into another cautionary tale.

More broadly, analysts are watching whether other DORK names continue to attract attention. If this week’s trading activity was more than a blip, the meme-stock movement may be gearing up for another high-volatility run into Q3.

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