Krispy Kreme, Inc. (DNUT) shares surged 5.96% on Wednesday, caught up in a broader meme stock rally that has taken Wall Street by storm. The iconic doughnut chain's stock was swept into a buying frenzy fueled by retail traders, who have been targeting heavily shorted companies in a pattern reminiscent of the 2021 meme stock phenomenon.

The rally in Krispy Kreme shares was part of a larger movement that saw several consumer-focused stocks experience significant gains. Beyond Meat (BYND) led the charge with a staggering increase, while Krispy Kreme at one point during the day was up over 31% before settling to its closing gain of nearly 6%.

Analysts attribute the sudden interest in Krispy Kreme to several factors. First, the stock's relatively high short interest made it an attractive target for retail traders looking to spark a short squeeze. Additionally, Krispy Kreme's recent announcement of international expansion plans, including new locations in Spain and future growth in Brazil and Uzbekistan, may have provided a fundamental basis for optimism among investors.

However, market observers caution that the current rally may be disconnected from the company's underlying financials. Krispy Kreme, like many of the stocks caught in this latest meme stock wave, has faced challenges in recent quarters, including a failed partnership with McDonald's earlier this year.

As the trading session came to a close, it remained unclear whether the surge in Krispy Kreme's stock price was sustainable or if it would follow the volatile pattern seen in other meme stocks. Investors and market watchers will be closely monitoring the situation to see if this sweet rally has staying power or if it will crumble like day-old doughnuts.