NEW YORK, NY / ACCESS Newswire / July 6, 2025 / If you suffered a loss on your Krispy Kreme, Inc. (NASDAQ:DNUT) investment and want to learn about a potential recovery under the federal securities laws, follow the link below for more information:
https://zlk.com/pslra-1/krispy-kreme-inc-lawsuit-submission-form?prid=155652&wire=1&utm_campaign=21
or contact Joseph E. Levi, Esq. via email at jlevi@levikorsinsky.com or call (212) 363-7500 to speak to our team of experienced shareholder advocates.
THE LAWSUIT: A class action securities lawsuit was filed against Krispy Kreme, Inc. that seeks to recover losses of shareholders who were adversely affected by alleged securities fraud between March 26, 2024 and May 7, 2025.
CASE DETAILS: According to the complaint, defendants provided overwhelmingly positive statements to investors while, at the same time, disseminating materially false and misleading statements and/or concealing material adverse facts related to the demand for Krispy Kreme products at McDonald's locations. Specifically, defendants failed to disclose that lower demand at McDonald's locations accounted for the declining average weekly sales per store; the partnership with McDonald's was not profitable thereby causing Krispy Kreme to pause expansion into new McDonald's locations.
The truth began to emerge on February 25, 2025, when Krispy Kreme issued a press release reporting disappointing fourth quarter 2024 financial results despite the recent partnership with McDonald's restaurants in March 2024. The Company reported a decline in "net revenue of $404 million, a decline of 10.4%" in addition to a decrease in "DFD average sales per door per week…driven by changing customer mix." On this news, Krispy Kreme's stock price declined from $9.13 per share on February 24, 2025 to $7.13 per share on February 25, 2025.
On May 8, 2025, defendants issued a press release announcing the Company's first quarter 2025 financial results. Defendants reported "[n]et revenue was $375.2 million in the first quarter of 2025, a decline of 15.3% or $67.5 million." Further, the Company announced it is "reassessing the deployment schedule together with McDonald's while it works to achieve a profitable business model for all parties" and given "the uncertainty around the McDonald's deployment schedule, the Company is withdrawing its prior full year outlook and not updating it at this time." On this news, the price of Krispy Kreme's common stock declined from a closing market price of $4.33 per share on May 7, 2025 to $3.26 per share on May 8, 2025, a decline of about 25% in the span of just a single day.
WHAT'S NEXT? If you suffered a loss in Krispy Kreme stock during the relevant time frame - even if you still hold your shares - go to https://zlk.com/pslra-1/krispy-kreme-inc-lawsuit-submission-form?prid=155652&wire=1&utm_campaign=21 to learn about your rights to seek a recovery. There is no cost or obligation to participate.
WHY LEVI & KORSINSKY: Over the past 20 years, Levi & Korsinsky LLP has established itself as a nationally-recognized securities litigation firm that has secured hundreds of millions of dollars for aggrieved shareholders and built a track record of winning high-stakes cases. The firm has extensive expertise representing investors in complex securities litigation and a team of over 70 employees to serve our clients. For seven years in a row, Levi & Korsinsky has ranked in ISS Securities Class Action Services' Top 50 Report as one of the top securities litigation firms in the United States. Attorney Advertising. Prior results do not guarantee similar outcomes.
CONTACT:
Levi & Korsinsky, LLP
Joseph E. Levi, Esq.
Ed Korsinsky, Esq.
33 Whitehall Street, 17th Floor
New York, NY 10004
jlevi@levikorsinsky.com
Tel: (212) 363-7500
Fax: (212) 363-7171
https://zlk.com/
SOURCE: Levi & Korsinsky, LLP
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