A securities class action has been filed in the USDC – W.D.N.C. against Krispy Kreme, Inc. (DNUT) (“Krispy Kreme” or the “Company”), on behalf of all persons and entities that purchased or otherwise acquired Krispy Kreme securities between February 25, 2025, and May 7, 2025, both dates inclusive (the “Class Period.

Krispy Kreme, together with its subsidiaries, produces doughnuts. On October 26, 2022, the Company commenced a small-scale test to offer doughnuts 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.

The complaint alleges that throughout the Class Period, Defendants made materially false and/or misleading statements, as well as failed to disclose material adverse facts about the Company’s business, operations, and prospects. Specifically, Defendants failed to disclose:

(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;

(5) that, as a result, the Company would pause expansion into new McDonald’s locations; and

(6) that, as a result of the foregoing, Defendants’ positive statements about the Company’s business, operations, and prospects were materially misleading and/or lacked a reasonable basis, thereby harming investors.

On this news, the price of Krispy Kreme shares fell 24.71%, or $1.07 per share, to close at $3.26 on May 8, 2025, on unusually heavy trading volume.

If you purchased Krispy Kreme securities during the Class Period and would like to receive more information or join the action, please enter your contact information below for a FREE consultation and click “Submit Your Information”.

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