Law Offices of Frank R. Cruz Encourages Krispy Kreme, Inc. (DNUT) Investors To Inquire About Securities Fraud Class Action
LOS ANGELES--(BUSINESS WIRE)--May 19, 2025--
The Law Offices of Frank R. Cruz 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 19, 2025 to file a lead plaintiff motion.
IF YOU SUFFERED A LOSS ON YOUR KRISPY KREME, INC. INVESTMENTS, CLICKHERETO SUBMIT A CLAIM TO POTENTIALLY RECOVER YOUR LOSSES IN THE ONGOING SECURITIES FRAUD LAWSUIT.
You can also contact the Law Offices of Frank R. Cruz to discuss your legal rights by email at [email protected], by telephone at (310) 914-5007, or visit our website at www.frankcruzlaw.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, wish to learn more about this action, or have any questions concerning this announcement or your rights or interests with respect to these matters, please click HERE or contact us at:
Law Offices of Frank R. Cruz
2121 Avenue of the Stars, Suite 800
Telephone: 310-914-5007
Email: [email protected]
Visit our website at: www.frankcruzlaw.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/20250519161705/en/
CONTACT: Law Offices of Frank R. Cruz
2121 Avenue of the Stars, Suite 800
Telephone: 310-914-5007
Email:[email protected]
Visit our website at:www.frankcruzlaw.com
KEYWORD: UNITED STATES NORTH AMERICA CALIFORNIA
INDUSTRY KEYWORD: CLASS ACTION LAWSUIT PROFESSIONAL SERVICES LEGAL
SOURCE: The Law Offices of Frank R. Cruz
Copyright Business Wire 2025.
PUB: 05/19/2025 10:33 AM/DISC: 05/19/2025 10:32 AM
http://www.businesswire.com/news/home/20250519161705/en
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Washington Post
16 minutes ago
- Washington Post
Corbin Burnes needs Tommy John surgery. Prepare for aftershocks.
When Arizona Diamondbacks ace Corbin Burnes left a pitch up to CJ Abrams last Sunday and immediately motioned for trainers, everyone at Chase Field understood what it might mean. And when cameras caught Burnes appearing to express concern about his elbow, there was little reason to doubt his self-diagnosis. Burnes has been one of the game's most durable starters since the start of the 2021 season. He knew this would change that. Diamondbacks Manager Torey Lovullo on Friday confirmed what Burnes and others had already suspected: The ace to whom Arizona committed $210 million over the next six years will miss the rest of the 2025 season and most of 2026 because he needs Tommy John surgery. Burnes, 30, will have the procedure next week. All injuries spur ripples — sometimes through a team's active roster, sometimes deep into an organization's minor league depth. But an injury to Burnes, one of the game's preeminent starting pitchers anchoring the rotation of a would-be playoff team fighting for its life, will have aftershocks near and far. The first jolt, of course, will be felt in the desert, where the Diamondbacks are hovering around .500 while trying to steady a pitching staff that was disappointing even with Burnes. Their other ace, Zac Gallen, has been uncharacteristically mediocre. Promising righty Brandon Pfaadt has been getting pummeled and lefty Eduardo Rodriguez only returned from injury Friday, meaning the Diamondbacks cannot be sure what he will give them. As such, if they intend to contend, they will likely need to add a starter at or before the trade deadline. Demand was already high, and with several teams still weighing their commitment to 2025, supply remains limited. But the Burnes injury could also change more than just the Diamondbacks' 2025 calculus; Arizona's owner, Ken Kendrick, has invested in winning recently but could seize the whiff of mediocrity to balance his recently bloated budget. If the Diamondbacks fall out of contention — and without Burnes, the chances of that increase — they could seek trades for first baseman Josh Naylor (making $10.9 million this year), third baseman Eugenio Suarez ($15 million), Gallen ($13.5 million) and right-hander Merrill Kelly ($7 million), all of whom would represent significant savings even with just the post-deadline portions of their salaries gone. Any savings could be crucial, because Burnes's injury also complicates Arizona's offseason. Gallen will be a free agent for the first time, and he will almost certainly want to test the market. Kelly will be a free agent, too. So is Jordan Montgomery, who also underwent Tommy John surgery this year. That leaves Arizona with only three sure things in next year's rotation: Rodriguez, Pfaadt and Ryne Nelson, who was in Arizona's bullpen but has started three games for the Diamondbacks this year. They will need more to contend in the National League West, which means they might need to be major players in this year's offseason starting pitching market, even though they just gave Burnes the largest pitching contract in their history. Fortunately for anyone seeking starting pitching this winter, options abound. Gallen, Framber Valdez and Dylan Cease headline a class that will also include Ranger Suárez, Chris Bassitt and Zach Eflin, not to mention the dozen or so strong starters who could opt out of deals if they so choose. But one more team on the prowl increases demand this winter — just like one more seller changes the entire trade deadline a few months earlier. For that reason, the aftershocks of the Burnes injury will also be felt in New York and Los Angeles and Chicago and beyond. If the Diamondbacks do decide to sell, even an underperforming Gallen would be one of the more coveted assets available — a potential fate-alterer for any postseason team. Suarez, too, offers the kind of clubhouse pep and on-field power that would make him a highly sought after deadline option. The Yankees, for example, have been hunting for a third base solution all year. Naylor has plenty of pop and postseason experience, too. Kelly has proven himself to be as tough as they come. If the Diamondbacks sell, any one of those players could change a team's October trajectory, if the stars align. Arizona is currently one of several teams that expected to contend and are underachieving. The Boston Red Sox, Atlanta Braves, Baltimore Orioles and Texas Rangers are all hoping to stave off a deadline sale by rejuvenating their chances over the next two months. The more that do so, the higher demand for Arizona's assets will be. The Diamondbacks have not been ones to cave in recent years, in large part because few teams know better how quickly fates can change. In 2023, they found themselves two games under .500 on August 11. They ended up in the World Series. But rallies like those are hard to engineer even with an annual Cy Young contender in the rotation. Without one … well, the contending vultures are starting to gather in the desert.
Yahoo
17 minutes ago
- Yahoo
Has Warren Buffett made his best move ever selling his Apple stock?
It's never a good idea trying to second-guess the Oracle of Omaha. Warren Buffett sold a huge chunk of his Apple (NASDAQ:AAPL) stock last year. It wasn't the first time he trimmed his position in the tech giant. Back in 2021, he admitted selling was 'probably a mistake'. But, amid recent share price weakness, I doubt he will repeat the same line this time. Recent soundings from Apple CEO Tim Cook seem to indicate he has taken a leaf out of Buffett's playbook. In a recent earnings call, he pushed investors to be patient as it attempts to roll out AI features in the iPhone. 'Not first, but best' was how he put it in an interview last year. In an investing landscape measured in quarterly earnings, though, many don't have much patience. In some respects, he is right. Three years into the generative AI revolution and not one consumer product has emerged, other than ChatGPT, of course. And that's despite the industry spending hundreds of billions of dollars, and with the might of the media hyping the technology on an almost daily basis. Recently, Jony Ive, the architect instrumental in the design of the iPhone, sold his company to OpenAI for $6.5bn. At the not-for-profit startup, he is working on what has been described as a 'screen-free' device. Some reports highlight that mass production could start as early as 2027. The threat is clearly on Apple's radar. During the ongoing Google anti-trust trial, one of Apple's senior executive stated: 'You may not need an iPhone 10 years from now, as crazy as that sounds.' Given the present state of hardware technology and the extremely vague statements that have come from Sam Altman regarding no-screen devices, I'm not willing to give much credence to these remarks. But, of course, that could change in the years ahead. Apple has a history of not rushing into a new technology, until its full potential is understood. It was a little-known company when General Magic invented the first smartphone. It didn't invent the music player, either. The biggest short-term risk to the stock is tariffs. Apple has undoubtedly been the biggest beneficiary of outsourcing manufacturing to China. It has certainly been a major contributor in pushing the valuation to $3trn. Trump's ambition of seeing the iPhone mass produced in the US is unlikely to ever happen, in my opinion. With consumers being squeezed from all directions these days, I don't believe they would ever stomach paying up to $3,000 for one. Tim Cook has already guided to expect $900m in additional costs over the next quarter. A tiny figure, yes, but I can't see it ending there. Without price increases, the frothy valuation looks unsustainable. As I just said, I'm not sure that consumers will be as obliging as in the past and accept such increases. As for Buffett, he still holds a significant chunk of Apple stock. But with a trailing price-to-earnings of 32, I'm not sure the risks are fully priced in. Therefore, I won't be investing. The post Has Warren Buffett made his best move ever selling his Apple stock? appeared first on The Motley Fool UK. More reading 5 Stocks For Trying To Build Wealth After 50 One Top Growth Stock from the Motley Fool Andrew Mackie has no position in any of the shares mentioned. The Motley Fool UK has recommended Apple. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors. Motley Fool UK 2025
Fox News
17 minutes ago
- Fox News
Guinea pigs share cucumber perfectly by splitting skin and core
All times eastern Maria Bartiromo's Wall Street Maria Bartiromo's Wall Street FOX News Radio Live Channel Coverage
