The Gross Law Firm notifies investors that a class action has commenced in the United States District Court for the Western District of North Carolina on behalf of shareholders of Krispy Kreme, Inc. who purchased securities between March 26, 2024 and May 7, 2025.
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.
If you wish to choose counsel to represent you and the class, you must apply to be appointed lead plaintiff and be selected by the Court. The lead plaintiff will direct the litigation and participate in important decisions including whether to accept a settlement for the class in the action. The lead plaintiff will be selected from among applicants claiming the largest loss from investment in the respective securities during the class periods. Members of the class will be represented by the lead plaintiff and counsel chosen by the lead plaintiff. No class has yet been certified in the above action. Appointment as Lead Plaintiff is not required to partake in any recovery.
Shareholders have until July 15, 2025 to request that the court appoint them lead plaintiff.
To receive more information, please fill out the form.
