Dairy Queen stock hit a new high Friday on news of the company’s new management team, with investors cheering the news and worried that some stocks are still at risk.
But it also remains unclear how many of the dairy queen stocks in jeopardy are truly under threat, with some analysts arguing that the company could be too low on capital to survive a potential downturn.
Analysts say the company will likely need to raise capital, as its debt loads have risen significantly in recent years and its earnings have lagged in recent quarters.
Shares of Dairy Queen jumped 5.3% to $23.60, the highest closing price of the year.
It is the second highest price since March, and the biggest increase since May.
Dairy Queen shares have also soared in recent months, as investors have become more concerned about the future of the industry, as well as fears of a potential dairy crisis.
The stock hit its highest level since January, and its closing price reached a record high of $23 per share.
Investors also hope that the new management will put more money into the company.
Analy analysts say the stock has risen because of the new leadership.
“The dairy industry has been in a downward spiral for quite some time, and there has been a lot of speculation that this new management is going to get things back to normal,” said David Shuster, chief market analyst at Sanford C. Bernstein.
Dorothy Z. Shuster with Dairy Queen shares at a news conference in New York.
(Photo: J. Scott Applewhite, AP)The stock’s price is up 4.4% since the start of the month.
The new management, which will take over from a board of directors who will include former CEOs Jim Morrissey and Bob Conant, will also have to decide how to manage the company, which has a massive market capitalization of more than $2 billion.
Dryadriah B. Gage with Dairy Princess stock at a trade show in New Orleans.
(Sign up for a daily roundup of the top business stories in the U.S.A.)
The company’s stock is up by more than 30% over the past year.
The company has been one of the biggest players in the dairy industry since it opened in 1972, but recent years have seen some serious declines in the business.
Dividends, the milk price and other key ingredients have all been in decline, as consumers have been moving away from dairy products.
The price of milk has also been falling, and as dairy products become more expensive, so has demand for the milk.
Last year, the price of a gallon of milk dropped to $1.49 from $2.74, according to a Reuters report.
In recent years, the dairy sector has been losing customers, with sales falling by 30% in the past four years.
In the past, dairy farmers have been able to get away with high prices by offering higher quality milk, but now consumers are getting the better deal because of better competition and cheaper milk, according the Bloomberg Billionaires Index.