Krispy Kreme, Inc.

On May 8, 2025, before the market opened, Krispy Kreme released its first quarter 2025 financial results, reporting its “net revenue was $375.2 million…a decline of 15.3%” and a “net loss of $33.4 million, compared to prior year net loss of $6.7 million.” Additionally, the Company announced that it is “reassessing [its] deployment schedule together with McDonald’s” and “withdrawing [its] prior full year outlook and not updating it” due in part to “uncertainty around the McDonald’s deployment schedule.”

On this news, the price of Krispy Kreme shares fell 24.71%, or $1.07 per share, to close at $3.26 per share on May 8, 2025, on unusually heavy trading volume.

The complaint filed in this class action alleges that throughout the Class Period, Defendants made materially false and/or misleading statements, as well as failed to disclose material adverse facts about the Company’s business, operations, and prospects. Specifically, Defendants failed to disclose to investors: (1) that demand for Krispy Kreme products declined materially at McDonald’s locations after the initial marketing launch; (2) that demand at McDonald’s locations was a driver of declining average sales per door per week; (3) that the partnership with McDonald’s was not profitable; (4) that the foregoing posed a substantial risk to maintaining the partnership with McDonald’s; (5) that, as a result, the Company would pause expansion into new McDonald’s locations; and (6) that, as a result of the foregoing, Defendants’ positive statements about the Company’s business, operations, and prospects were materially misleading and/or lacked a reasonable basis.