Law Offices of Howard G. Smith Encourages Krispy Kreme, Inc. (DNUT) Investors To Inquire About Securities Fraud Class Action

Associated Press

18-05-2025

BENSALEM, Pa.--(BUSINESS WIRE)--May 18, 2025--
Law Offices of Howard G. Smith announces that a class action lawsuit has been filed on behalf of investors who purchased Krispy Kreme, Inc. ('Krispy Kreme' or the 'Company') (NASDAQ: DNUT ) securities between February 25, 2025 and May 7, 2025, inclusive (the 'Class Period'). Krispy Kreme investors have until July 15, 2025 to file a lead plaintiff motion.
IF YOU ARE AN INVESTOR WHO SUFFERED A LOSS IN KRISPY KREME, INC. (DNUT), CONTACT THE LAW OFFICES OF HOWARD G. SMITH TO PARTICIPATE IN THE ONGOING SECURITIES FRAUD LAWSUIT.
Contact the Law Offices of Howard G. Smith to discuss your legal rights by email at [email protected], by telephone at [phone] or visit our website at www.howardsmithlaw.com.
What Happened?
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.
What Is The Lawsuit About?
The complaint filed in this class action 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 to investors: (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.
Contact Us To Participate or Learn More:
If you purchased Krispy Kreme securities, have information or would like to learn more about these claims, or have any questions concerning this announcement or your rights or interests with respect to these matters, please contact us:
Law Offices of Howard G. Smith,
3070 Bristol Pike, Suite 112,
Bensalem, Pennsylvania 19020,
Telephone: [phone]
Email: [email protected],
Visit our website at: www.howardsmithlaw.com.
This press release may be considered Attorney Advertising in some jurisdictions under the applicable law and ethical rules.
View source version on businesswire.com:https://www.businesswire.com/news/home/20250518447316/en/
CONTACT: Contact Us:
Law Offices of Howard G. Smith
Howard G. Smith, Esquire
215-638-4847
[email protected]
www.howardsmithlaw.com
KEYWORD: UNITED STATES NORTH AMERICA PENNSYLVANIA
INDUSTRY KEYWORD: CLASS ACTION LAWSUIT PROFESSIONAL SERVICES LEGAL
SOURCE: Law Offices of Howard G. Smith
Copyright Business Wire 2025.
PUB: 05/18/2025 01:00 PM/DISC: 05/18/2025 12:59 PM
http://www.businesswire.com/news/home/20250518447316/en