Krispy Kreme(US:DNUT) GlobeNewswire News Room·2025-06-14 00:00Core Viewpoint - Krispy Kreme, Inc. is facing a federal securities class action due to significant declines in revenue and profitability, particularly related to its partnership with McDonald's, which has led to a reassessment of its business strategy and outlook [1][4][5]. Financial Performance - For the first quarter of 2025, Krispy Kreme reported net revenue of $375.2 million, reflecting a decline of 15.3% compared to the previous year [4]. - The company experienced a net loss of $33.4 million, a significant increase from a net loss of $6.7 million in the prior year [4]. Partnership with McDonald's - Krispy Kreme began a test to offer donuts at McDonald's locations in October 2022, which expanded to a nationwide partnership announced in March 2024 [3]. - Following disappointing sales at McDonald's locations, Krispy Kreme is reassessing its deployment schedule and has withdrawn its full-year outlook due to uncertainties surrounding the partnership [4][5]. Legal Action - A class action lawsuit has been filed on behalf of investors who acquired Krispy Kreme securities between February 25, 2025, and May 7, 2025, with a deadline of July 15, 2025, to seek lead plaintiff status [1]. - The complaint alleges that the company failed to disclose material declines in demand for its products at McDonald's, which negatively impacted sales and profitability [5].