NEW YORK--(BUSINESS WIRE)--
The law firm of Kirby McInerney LLP reminds investors who purchased Krispy Kreme, Inc. (“Krispy Kreme” or the “Company”) (NASDAQ:DNUT) securities to contact Thomas W. Elrod of Kirby McInerney LLP by email at investigations@kmllp.com, or fill out the contact form below, to discuss your rights or interests with respect to the securities fraud class action lawsuit against the Company.
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The lawsuit was filed on behalf of investors who acquired Krispy Kreme securities from February 25, 2025, through May 7, 2025 (“the Class Period”). Investors have until July 15, 2025, to apply to the Court to be appointed as lead plaintiff in the lawsuit.
On October 26, 2022, Krispy Kreme commenced a small-scale test to offer donuts at McDonald’s Corporation (“McDonald’s”) restaurants in Louisville, Kentucky and the surrounding area. On March 26, 2024, Krispy Kreme and McDonald’s announced they would expand their partnership nationwide beginning in the second half of 2024.
On May 8, 2025, before the market opened, Krispy Kreme released its first quarter 2025 financial results, reporting its “net revenue was $375.2 million…a decline of 15.3%” and a “net loss of $33.4 million, compared to prior year net loss of $6.7 million.” Additionally, the Company announced that it is “reassessing [its] deployment schedule together with McDonald’s” and “withdrawing [its] prior full year outlook and not updating it” due in part to “uncertainty around the McDonald’s deployment schedule.” On this news, the price of Krispy Kreme shares declined by $1.07 per share, or approximately 24%, from $4.33 per share on May 7, 2025, to close at $3.26 on May 8, 2025.
The complaint alleges that defendants, throughout the Class Period, failed to disclose that: (1) that demand for Krispy Kreme products declined materially at McDonald’s locations after the initial marketing launch; (2) that demand at McDonald’s locations was a driver of declining average sales per door per week; (3) that the partnership with McDonald’s was not profitable; (4) that the foregoing posed a substantial risk to maintaining the partnership with McDonald's; and (5) that, as a result, the Company would pause expansion into new McDonald’s locations.
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Kirby McInerney LLP is a New York-based plaintiffs’ law firm concentrating in securities, antitrust, whistleblower, and consumer litigation. The firm’s efforts on behalf of shareholders in securities litigation have resulted in recoveries totaling billions of dollars. Additional information about the firm can be found at Kirby McInerney LLP’s website.
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