Core Points - A shareholder class action lawsuit has been filed against Krispy Kreme, alleging that the company made materially false and misleading statements regarding its business and operations [1] - The lawsuit claims that demand for Krispy Kreme products significantly declined at McDonald's locations after the initial marketing launch, impacting average sales per door per week [1] - It is alleged that the partnership with McDonald's was not profitable, posing a substantial risk to maintaining the partnership and leading to a pause in expansion into new McDonald's locations [1] Legal Information - Shareholders who purchased Krispy Kreme shares between February 25, 2025, and May 7, 2025, and experienced significant losses are encouraged to discuss their legal rights [2] - The deadline to request to be appointed lead plaintiff in the case is July 15, 2025 [3] - Holzer & Holzer, LLC is representing shareholders in this litigation and has a history of recovering significant amounts for shareholders affected by corporate misconduct [3]

SAN DIEGO, May 19, 2025 /PRNewswire/ -- The law firm of Robbins Geller Rudman & Dowd LLP announces that purchasers or acquirers of Krispy Kreme, Inc. (NASDAQ: DNUT) securities between February 25, 2025 and May 7, 2025, inclusive (the "Class Period"), have until July 15, 2025 to seek appointment as lead plaintiff of the Krispy Kreme class action lawsuit.  Captioned Cameron v. Krispy Kreme, Inc., No. 25-cv-00332 (W.D.N.C.), the Krispy Kreme class action lawsuit charges Krispy Kreme and certain of Krispy Kreme ...

Core Viewpoint - Krispy Kreme, Inc. is under investigation for potential securities fraud and unlawful business practices following a significant drop in revenue and the suspension of its full-year guidance and dividend payments [1][3]. Financial Performance - On May 8, 2025, Krispy Kreme reported a notable decline in revenue attributed to "consumer softness leading to a decline in doughnut shop transaction volume" [3]. - The company pulled its full-year guidance and suspended future dividend payments due to a challenging environment and efforts to preserve cash [3]. Stock Market Reaction - Following the financial results announcement on May 8, 2025, Krispy Kreme's stock price fell by $1.07 per share, or 24.71%, closing at $3.26 per share [4]. - On May 9, 2025, after analysts from Evercore ISI and Citigroup reduced their price targets for Krispy Kreme, the stock price further declined by $0.53 per share, or 16.26%, closing at $2.73 per share [4].

Core Viewpoint - Krispy Kreme, Inc. is facing a class action lawsuit due to alleged violations of the Securities Exchange Act of 1934, with claims of misleading statements regarding its partnership with McDonald's and declining product demand [1][3]. Group 1: Class Action Lawsuit Details - The class action lawsuit is titled Cameron v. Krispy Kreme, Inc., and it involves purchasers of Krispy Kreme securities from February 25, 2025, to May 7, 2025 [1]. - Investors have until July 15, 2025, to seek appointment as lead plaintiff in the lawsuit [1]. - The lawsuit alleges that Krispy Kreme's executives made false statements about the profitability and demand for their products at McDonald's locations [3]. Group 2: Financial Performance - Krispy Kreme reported a net revenue of $375.2 million for the first quarter of 2025, representing a decline of 15.3% compared to the previous year [4]. - The company also reported a net loss of $33.4 million, compared to a net loss of $6.7 million in the prior year [4]. - Following the release of these financial results, Krispy Kreme's share price fell by nearly 25% [4]. Group 3: Partnership with McDonald's - The lawsuit claims that demand for Krispy Kreme products significantly declined at McDonald's locations after an initial marketing launch [3]. - It is alleged that this decline in demand contributed to decreasing average sales per door per week and posed risks to the partnership's sustainability [3]. - Krispy Kreme announced it would pause expansion into new McDonald's locations due to these challenges [3].

Krispy Kreme (DNUT 4.21%) has left shareholders with a glazed-over look of disappointment. As of this writing, the stock has crumbled by a disastrous 69% year to date amid a string of weaker-than-expected financial results. The donut-making giant is struggling with sliding demand and several setbacks in its global expansion strategy. The headline numbers are far from tempting, but this level of extreme volatility can sometimes offer investors the chance to snag a sweet deal, assuming the company can turn th ...

Investors can contact the law firm at no cost to learn more about recovering their losses LOS ANGELES, May 12, 2025 (GLOBE NEWSWIRE) -- The Portnoy Law Firm advises Krispy Kreme, Inc. (“Krispy Kreme” or “the Company”) (NASDAQ: DNUT) investors that the firm has initiated an investigation into possible securities fraud and may file a class action on behalf of investors. Krispy Kreme, Inc. investors that lost money on their investment are encouraged to contact Lesley Portnoy, Esq. Investors are encouraged to c ...

Core Viewpoint - Faruqi & Faruqi, LLP is investigating potential claims against Krispy Kreme, Inc. following significant financial losses reported by the company, which have adversely affected its stock price and injured investors [3][4][5]. Financial Performance - On February 25, 2025, Krispy Kreme reported fourth quarter 2024 financial results with net revenue of $404.0 million, reflecting a decline of 10.4% compared to the previous year, and a decrease in sales per door per week due to a changing customer mix [4]. - Following this announcement, Krispy Kreme's stock price dropped by $2.00, or 21.9%, closing at $7.13 per share on the same day [4]. - On May 8, 2025, the company released its first quarter 2025 financial results, showing net revenue of $375.2 million, a decline of 15.3%, and a net loss of $33.4 million, compared to a net loss of $6.7 million in the prior year [5]. - The stock price fell further by $1.07, or 24.7%, closing at $3.26 per share after this announcement [5]. Company Actions - Krispy Kreme announced it is reassessing its deployment schedule with McDonald's and has withdrawn its prior full year outlook due to uncertainties surrounding the partnership [5].

Core Insights - Kirby McInerney LLP is investigating potential claims against Krispy Kreme, Inc. regarding possible violations of federal securities laws and unlawful business practices [1] Financial Performance - On February 25, 2025, Krispy Kreme reported fourth quarter 2024 financial results with net revenue of $404.0 million, a decline of 10.4%, and a decrease in sales per door per week due to changing customer mix. Following this announcement, the share price fell by $2.00, or approximately 22%, from $9.13 to $7.13 [3] - On May 8, 2025, Krispy Kreme released first quarter 2025 financial results, showing net revenue of $375.2 million, a decline of 15.3%, and a net loss of $33.4 million compared to a prior year net loss of $6.7 million. The company also announced a reassessment of its deployment schedule with McDonald's and withdrew its full year outlook, leading to a share price drop of $1.07, or approximately 25%, from $4.33 to $3.26 [4]

Core Viewpoint - Krispy Kreme is pausing its planned rollout of selling doughnuts in McDonald's locations nationwide to reassess the deployment schedule and achieve a profitable business model for both parties [1][2]. Company Summary - As of the end of March, Krispy Kreme sells doughnuts in over 2,400 McDonald's restaurants and does not expect to add more locations in the second quarter of 2025 [1]. - The partnership between Krispy Kreme and McDonald's was announced in March 2024, with the goal of selling doughnuts at all McDonald's locations in the US by the end of 2026 [2][4]. - Krispy Kreme's CEO mentioned that demand fell below expectations after the initial launch, necessitating intervention [2]. - The company has pulled its full-year outlook due to macroeconomic softness and uncertainty surrounding the McDonald's deployment schedule [4]. Industry Summary - Fast-food restaurants, including McDonald's, are experiencing sluggish sales attributed to economic uncertainty affecting consumer spending [4][5]. - McDonald's US same-store sales dropped by 3.6% in the first quarter, marking the largest decline since the COVID-19 pandemic in 2020 [4]. - Other restaurant chains, such as Domino's Pizza, Chipotle Mexican Grill, and Starbucks, have also reported decreased consumer spending on dining out due to inflation and a negative economic outlook [5].

Core Viewpoint - Following the release of its first-quarter results, Krispy Kreme's stock faced significant declines, with analysts also expressing negative sentiments towards the stock, leading to a drop of over 16% in share price on Friday [1]. Group 1: Analyst Reactions - Evercore ISI analyst David Palmer significantly reduced his price target for Krispy Kreme from $9 to $3 per share, while maintaining a neutral (hold) recommendation [2]. - Citigroup analyst Jon Tower lowered his fair value assessment for Krispy Kreme from $4.75 to $3.60 per share, also keeping a neutral recommendation on the stock [4]. Group 2: Company Challenges - Krispy Kreme's partnership with McDonald's has been paused, which is a troubling factor for the company, alongside ongoing weakness in the U.S. retail sector that contributes approximately 30% of its revenue [3]. - The food industry is facing challenges due to consumer sentiment and trends, with no favorable trends currently supporting Krispy Kreme, leading to a negative outlook from analysts [5].