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 March 26, 2024, and May 7, 2025, and experienced significant losses are encouraged to discuss their legal rights [2] - The deadline to request appointment as lead plaintiff in the case is July 15, 2025 [3] - Holzer & Holzer, LLC is a law firm specializing in securities litigation and has a history of recovering funds for shareholders affected by corporate misconduct [3]

Business Dealings - Krispy Kreme's deal to sell doughnuts in McDonald's restaurants ended this week [1] - The deal had high hopes and promising early results [1]

Core Viewpoint - Krispy Kreme, Inc. is facing a class action lawsuit due to alleged misleading statements regarding its partnership with McDonald's and declining product demand, which has resulted in significant financial losses for investors [1][4][5]. Group 1: Company Overview - Krispy Kreme manufactures and sells doughnuts and has been expanding its partnership with McDonald's since October 2022, starting with a small-scale test in Louisville, Kentucky [3]. - The partnership was announced to expand nationwide in the second half of 2024 [3]. Group 2: Allegations and Financial Impact - The lawsuit claims that during the class period, Krispy Kreme failed to disclose a significant decline in demand for its products at McDonald's locations, which negatively impacted average sales [4]. - It is alleged that the partnership with McDonald's was not profitable and posed risks to its continuation, leading to a suspension of further expansion into new locations [4]. - On May 8, 2025, Krispy Kreme reported a net revenue of $375.2 million, a 15.3% year-over-year decline, and a net loss of $33.4 million, compared to a $6.7 million loss the previous year [5]. - Following the financial report and reassessment of the rollout schedule with McDonald's, Krispy Kreme's stock price fell nearly 25% [5].

Core Viewpoint - The Gross Law Firm has issued a notice to shareholders of Krispy Kreme, Inc. regarding a class action lawsuit due to allegations of misleading statements related to the company's partnership with McDonald's and its impact on sales performance [1][3]. Summary by Relevant Sections Allegations - The complaint alleges that Krispy Kreme's management provided overly positive statements while concealing material adverse facts about the demand for Krispy Kreme products at McDonald's locations [3]. - It is claimed that lower demand at McDonald's led to declining average weekly sales per store, and the partnership was not profitable, prompting Krispy Kreme to pause expansion into new locations [3]. Financial Performance - On February 25, 2025, Krispy Kreme reported a net revenue decline of $404 million, a decrease of 10.4%, alongside a drop in average sales per door per week due to changing customer mix [3]. - Following this announcement, the stock price fell from $9.13 per share on February 24, 2025, to $7.13 per share on February 25, 2025 [3]. - On May 8, 2025, the company reported first quarter 2025 net revenue of $375.2 million, a decline of 15.3% or $67.5 million, and announced a reassessment of its partnership with McDonald's [3]. - The stock price further declined from $4.33 per share on May 7, 2025, to $3.26 per share on May 8, 2025, representing a drop of about 25% in one day [3]. Next Steps for Shareholders - Shareholders who purchased shares during the specified class period are encouraged to register for the class action by July 15, 2025, to potentially become lead plaintiffs [4]. - Registered shareholders will receive updates through a portfolio monitoring software throughout the lifecycle of the case [4].

Core Viewpoint - Faruqi & Faruqi, LLP is investigating potential claims against Krispy Kreme, Inc. due to allegations of misleading statements and a significant decline in financial performance, particularly related to its partnership with McDonald's [3][5][6]. Group 1: Legal Investigation - The law firm is encouraging investors who suffered losses exceeding $100,000 in Krispy Kreme between February 25, 2025, and May 7, 2025, to contact them for legal options [1]. - A federal securities class action has been filed against Krispy Kreme, with a deadline of July 15, 2025, for investors to seek the role of lead plaintiff [3][7]. 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 [6]. - The company also announced a net loss of $33.4 million, compared to a net loss of $6.7 million in the prior year [6]. - Following the financial results announcement, Krispy Kreme's share price fell by 24.71%, closing at $3.26 per share on May 8, 2025 [6]. Group 3: Allegations Against Krispy Kreme - The complaint alleges that Krispy Kreme and its executives made false or misleading statements regarding the demand for its products at McDonald's locations, which significantly declined after the initial marketing launch [5]. - It is claimed that the partnership with McDonald's was not profitable and posed substantial risks to maintaining the partnership, leading to a pause in expansion plans [5].

Core Viewpoint - Rosen Law Firm is reminding investors who purchased Krispy Kreme, Inc. securities between February 25, 2025, and May 7, 2025, of the July 15, 2025, deadline to become a lead plaintiff in a class action lawsuit [1]. Group 1: Class Action Details - Investors who bought Krispy Kreme securities during the specified Class Period may be entitled to compensation without any out-of-pocket fees through a contingency fee arrangement [1]. - A class action lawsuit has already been filed, and interested parties must move the Court by July 15, 2025, to serve as lead plaintiff, representing other class members [2]. Group 2: Rosen Law Firm's Credentials - Rosen Law Firm emphasizes the importance of selecting qualified counsel with a successful track record in securities class actions, highlighting its own achievements, including the largest securities class action settlement against a Chinese company at the time [3]. - The firm has been ranked No. 1 for securities class action settlements in 2017 and has consistently ranked in the top 4 since 2013, recovering hundreds of millions of dollars for investors, including over $438 million in 2019 alone [3]. Group 3: Case Allegations - The lawsuit alleges that during the Class Period, Krispy Kreme made false and misleading statements regarding the demand for its products at McDonald's locations, which declined significantly after the initial marketing launch [4]. - It is claimed that the partnership with McDonald's was not profitable, leading to a pause in expansion into new locations and that the positive statements made by Krispy Kreme were materially misleading [4].

Core Insights - Krispy Kreme's stock experienced a 25% increase during a trading week shortened by the July Fourth holiday, primarily due to its inclusion in several new stock indexes and executive transitions [1][2]. Group 1: Stock Index Inclusion - Krispy Kreme's stock is now part of multiple equity trackers, including the Russell 2000 Value index, Russell 2500 Value index, Russell Small Cap Comp Value index, and Russell 3000E Value index, in addition to its existing position in the Russell 2000 [2]. - Inclusion in these indexes enhances the stock's prestige and increases its popularity due to the demand from index funds that are limited to stocks within specific indexes [4]. Group 2: Executive Transitions - Effective July 11, Krispy Kreme will have a new CFO, Raphael Duvivier, who is currently the president of international business and a long-serving executive, replacing Jeremiah Ashukian [5]. - Alison Holder has been promoted from chief product officer to chief brand and product officer, bringing 25 years of experience with the company, including roles in consumer insights [6]. Group 3: Business Performance - Despite the positive stock movements, Krispy Kreme has faced flat to stagnant revenue and has reported more quarterly net losses than profits, indicating limited growth opportunities in a health-conscious market [7].

Partnerships & Agreements - Krispy Kreme 与 McDonald's 的合作结束，此前双方曾对在 McDonald's 餐厅销售 Krispy Kreme 甜甜圈抱有很高的期望，并且早期结果很有希望 [1]

Leadership Change - Krispy Kreme's current president of international operations, Raphael Duvivier, will become CFO next week [1] Company Performance - Krispy Kreme is described as a struggling doughnut maker [1]

人事变动 - Krispy Kreme 首席财务官 Jeremiah Ashukian 将离职，寻求在一家私营公司发展机会 [1]