Krispy Kreme(US:DNUT) GlobeNewswire News Room·2025-07-02 20:03Core Viewpoint - The article discusses a class action lawsuit against Krispy Kreme, Inc. (NASDAQ: DNUT) due to allegations of misleading statements regarding the demand for its products at McDonald's locations, which negatively impacted the company's stock performance [1][3]. Summary by Sections Allegations - The complaint alleges that Krispy Kreme's management provided overly positive statements while concealing material adverse facts about declining demand at McDonald's locations, which contributed to a decrease in average weekly sales per store [3]. - The partnership with McDonald's was reportedly unprofitable, leading Krispy Kreme to pause its expansion into new locations [3]. Financial Performance - On February 25, 2025, Krispy Kreme reported disappointing fourth quarter 2024 results, with net revenue of $404 million, a decline of 10.4%, and a decrease in average sales per door per week due to a 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 deployment schedule with McDonald's [3]. - The stock price dropped from $4.33 per share on May 7, 2025, to $3.26 per share on May 8, 2025, marking a decline of about 25% in one day [3]. Next Steps for Shareholders - Shareholders who purchased DNUT 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 case lifecycle [4].