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 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 action alleges that, between February 26, 2025 and May 7, 2025 (the class period), Defendants made false and/or misleading statements about the viability of Krispy Kreme’s partnership with McDonald’s Corporation and failed to disclose materially adverse facts about Krispy Kreme’s business and prospects. Specifically, Defendants failed to disclose declining demand and profitability issues tied to the McDonald’s partnership, the resulting pause in expansion into McDonald’s locations, and the substantial risks these issues posed to the partnership and Krispy Kreme’s outlook.
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 fell 24.71%, or $1.07 per share, to close at $3.26 per share on May 8, 2025, on unusually heavy trading volume.
On November 20, 2025, the Court appointed the West Palm Beach Police Pension Fund as Lead Plaintiff and Saxena White P.A. as Lead Counsel. Lead Plaintiff filed the consolidated complaint on January 30, 2026. Defendants filed their motion to dismiss the complaint on March 31, 2026. Lead Plaintiff’s opposition was filed on April 30, 2026, and Defendants’ reply is due May 21, 2026.
