
Core Viewpoint - Bragar Eagel & Squire, P.C. is investigating potential claims against Krispy Kreme, Inc. due to a class action lawsuit alleging breaches of fiduciary duties by the board of directors during a specified class period [1][2]. Group 1: Class Action Lawsuit Details - The class action lawsuit claims that Krispy Kreme made false or misleading statements regarding the demand for its products at McDonald's locations, which significantly declined after the initial marketing launch [2]. - It is alleged that the declining demand at McDonald's contributed to a decrease in average sales per door per week and that the partnership with McDonald's was not profitable, posing risks to the continuation of this partnership [2]. - The lawsuit also states that Krispy Kreme would pause its expansion into new McDonald's locations due to these issues [2]. Group 2: Financial Performance - On May 8, 2025, Krispy Kreme reported its 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, a significant increase from the prior year's net loss of $6.7 million [3]. - Following the release of these financial results, Krispy Kreme announced it would reassess its deployment schedule with McDonald's and withdrew its prior full-year outlook, citing uncertainty around the McDonald's deployment schedule [3]. - The announcement led to a nearly 25% drop in Krispy Kreme's share price [3].