Krispy Kreme(US:DNUT) GlobeNewswire News Room·2025-07-01 00:21Core Viewpoint - A class action lawsuit has been filed against Krispy Kreme, Inc. for allegedly misleading investors regarding its partnership with McDonald's and the subsequent decline in demand for its products [1][2]. Allegations - The lawsuit claims that Krispy Kreme did not disclose significant issues, including a material decline in demand for its products at McDonald's locations after the initial marketing launch [2] - It is alleged that this decline in demand contributed to a decrease in average sales per door per week and that the partnership with McDonald's was not profitable [2] - The company is said to have faced substantial risks in maintaining the partnership, leading to a pause in expansion into new McDonald's locations [2] Financial Results - 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 [3] - The company also reported a net loss of $33.4 million, compared to a net loss of $6.7 million in the prior year [3] - Krispy Kreme announced it would reassess its deployment schedule with McDonald's and withdraw its previous full-year outlook due to uncertainties surrounding the partnership [3] - Following this announcement, Krispy Kreme's share price fell by nearly 25%, negatively impacting investors [3] Class Action Participation - Shareholders interested in serving as lead plaintiffs in the class action must file their papers by July 15, 2025 [4] - Participation in the case is not required to be eligible for recovery, allowing shareholders to remain absent class members if they choose [4] Legal Representation - Robbins LLP operates on a contingency fee basis, meaning shareholders incur no fees or expenses [5]