
Core Viewpoint - A class action lawsuit has been filed against Krispy Kreme, alleging misleading statements and undisclosed risks related to its partnership with McDonald's, which has negatively impacted the company's financial performance and stock price [2][4][5]. Group 1: Lawsuit Details - The class action lawsuit is on behalf of all individuals and entities who purchased Krispy Kreme securities between March 26, 2024, and May 7, 2025 [2]. - Investors have until July 15, 2025, to apply to the Court to be appointed as lead plaintiff in the lawsuit [2]. - The lawsuit claims that Krispy Kreme made false statements regarding the demand for its products at McDonald's locations and the profitability of the partnership [4]. Group 2: Financial Performance - Krispy Kreme reported net revenue of $375.2 million for the first quarter of 2025, representing a decline of 15.3% compared to the previous year [5]. - The company also reported a net loss of $33.4 million, compared to a net loss of $6.7 million in the prior year [5]. - Following the release of these financial results, Krispy Kreme's stock price fell by nearly 25% [5]. Group 3: Partnership with McDonald's - Krispy Kreme began a small-scale test to offer doughnuts at McDonald's in October 2022 and announced an expansion of this partnership nationwide starting in the second half of 2024 [3]. - The lawsuit alleges that demand for Krispy Kreme products at McDonald's locations declined significantly after the initial marketing launch, impacting average sales per door [4]. - Krispy Kreme is reassessing its deployment schedule with McDonald's and has withdrawn its prior full-year outlook due to uncertainties surrounding this partnership [5].