SHAREHOLDER NOTICE: Faruqi & Faruqi, LLP Investigates Claims on Behalf of Investors of Krispy Kreme

Core Viewpoint - Faruqi & Faruqi, LLP is investigating potential claims against Krispy Kreme, Inc. related to alleged violations of federal securities laws, with a deadline for investors to seek lead plaintiff status by July 15, 2025 [3][5]. Group 1: Allegations Against Krispy Kreme - The complaint alleges that Krispy Kreme and its executives made false or misleading statements regarding the demand for Krispy Kreme products at McDonald's locations, which declined significantly after the initial marketing launch [5]. - It is claimed that the declining demand at McDonald's was a key factor in the drop in average sales per door per week, and that the partnership with McDonald's was not profitable [5]. - The allegations suggest that these issues posed a substantial risk to maintaining the partnership with McDonald's, leading to a pause in expansion into new locations [5]. Group 2: Financial Performance - On May 8, 2025, Krispy Kreme reported first quarter 2025 financial results, revealing net revenue of $375.2 million, a decline of 15.3% compared to the previous year, and a net loss of $33.4 million, compared to a net loss of $6.7 million in the prior year [6]. - The company announced it is reassessing its deployment schedule with McDonald's and withdrawing its prior full-year outlook due to uncertainty surrounding the partnership [6]. - Following the financial results announcement, Krispy Kreme's share price fell by 24.71%, or $1.07 per share, closing at $3.26 on May 8, 2025, amid unusually heavy trading volume [6]. Group 3: Legal Proceedings - The lead plaintiff in the class action lawsuit will be the investor with the largest financial interest who is adequate and typical of class members, overseeing the litigation on behalf of the class [7]. - Any member of the putative class can move the court to serve as lead plaintiff or choose to remain an absent class member without affecting their ability to share in any recovery [7]. - Faruqi & Faruqi encourages anyone with information regarding Krispy Kreme's conduct to contact the firm, including whistleblowers and former employees [8].