Krispy Kreme(US:DNUT) Prnewswire·2025-06-15 14:25Core 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 [2][4]. 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 [2][6]. Group 2: Financial Performance - Krispy Kreme reported net revenue of $375.2 million for Q1 2025, reflecting a decline of 15.3% compared to the previous year [5]. - The company also reported a net loss of $33.4 million for Q1 2025, compared to a net loss of $6.7 million in the prior year [5]. - Following the release of these financial results, Krispy Kreme's share price fell by 24.71%, or $1.07 per share, closing at $3.26 on May 8, 2025 [5]. 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 [4]. - 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 [4].