Latest news with #JoshCharlesworth
Yahoo
20-05-2025
- Business
- Yahoo
Krispy Kreme faces investor lawsuit over halted McDonald's expansion
Krispy Kreme is facing a class action lawsuit from investors who allege they were misled regarding the company's halted expansion into McDonald's restaurants. The doughnut giant had announced plans to supply fresh doughnuts to 12,000 McDonald's locations by the end of 2026, but paused the rollout due to low demand and profitability concerns. The lawsuit claims that Krispy Kreme failed to disclose the decline in demand following the initial marketing campaign, the lack of profitability from the partnership and the subsequent halt in expansion. The company's stock fell by 24.71% after this announcement. McDonald's is part of Krispy Kreme's Delivered Fresh Daily (DFD) model, which delivers fresh products to outlets such as convenience stores, gas stations and grocery stores. The company also partners with Target, Walmart and Kroger. But despite these partnerships, Krispy Kreme has reported a slight decrease in net and organic revenue, citing consumer softness and a drop in doughnut shop transactions, particularly in the US. Krispy Kreme CEO Josh Charlesworth told investor analysts during the company's first quarter (Q1) earnings call: 'We're pleased with many aspects of the McDonald's partnership. The execution across all the cities has been very good. Our teams have worked well together, making sure we have awesome fresh doughnuts readily available. I think it's also important to understand that we need it to be profitable on a sustainable basis over the long term. 'So what we're doing working with them is to make sure that the availability and the visibility of the doughnuts is consistently prominent and that our operations are as simplified and streamlined as they can be. So really, our focus through 2,400 restaurants we're in today is making sure we're positioned for profitable growth before we expand further.' Krispy Kreme reported a net revenue of $375.2m for Q1, which ended on 30 March 2025. Organic revenue declined 1% to $374.7m. To improve efficiency and reduce costs, Krispy Kreme is moving towards outsourcing its delivery network. It is expected to be fully outsourced by mid-2026. The company is also retrofitting production hubs in strategic locations to decrease capital and real estate expenses significantly. The class action lawsuit is open to investors who acquired Krispy Kreme securities between 25 February and 7 May 2025. "Krispy Kreme faces investor lawsuit over halted McDonald's expansion" was originally created and published by Verdict Food Service, a GlobalData owned brand. The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Daily Mail
11-05-2025
- Business
- Daily Mail
Krispy Kreme pauses donut rollout with McDonald's
McDonald's and Krispy Kreme are putting their partnership on hold in the face of financial hardship for the donut chain. Krispy Kreme announced on Thursday that it would be 'reassessing' its alliance with the fast food giant after announcing its year-over-year net revenue declined nearly $60million, or just over 20 percent. The company sells its donuts at more than 2,400 McDonald's across the US but will not be expanding into additional locations. Krispy Kreme CEO Josh Charlesworth had originally aimed to sell donuts at all of McDonald's US restaurants by 2026 . The US is home of more than 13,600 McDonald's restaurants and over 350 Krispy Kreme locations. The donut chain's stock tumbled by 25 percent at yesterday's opening bell. 'I remain confident in the long-term national opportunity, but we need to work together with them to identify levers to improve sales,' Charlesworth told CNBC . Krispy Kreme and McDonald's entered their partnership back in October 2022. The fast-food empire began selling Krispy Kreme donuts at nine restaurants in Louisville, Kentucky , for a limited time later that year. The chains expanded to 160 McDonald's locations in Louisville and Lexington, Kentucky, by February 2023. Krispy Kreme treats became a highly requested menu item at McDonald's, and the donut chain's expansion announcement raised its stock by more than 20 percent at the time. But Krispy Kreme had shown signs of financial struggles early on. The chain lost about 73 percent of its market value over the past year and began noticing 'demand drops' after launching its regional rollout. McDonald's has also suffered major sales slumps after entering the partnership, recently suffering its worst quarter since the Covid-19 pandemic. The recent drop was mainly the result of an outbreak in Quarter Pounders , which left one person dead and over 100 infected . Krispy Kreme also announced the discontinuation of paying dividends to shareholders. This will help the chain save $6 million each quarter. 'Our ability to become a bigger Krispy Kreme requires that we become better, and we are taking swift and decisive action to pay down debt, de-leverage the balance sheet and drive sustainable, profitable growth,' Charlesworth said. The company is working with Walmart and Costco to sell its donuts in their stores after coming to Sam's Club earlier this year. McDonald's is working to bounce back from its financial issues by doubling down on its value meals and McValue platform. Want more stories like this from the Daily Mail? Visit our profile page and hit the follow button above for more of the news you need.
New York Post
09-05-2025
- Business
- New York Post
Krispy Kreme pauses doughnut rollout with McDonald's after surprising lack of demand
Krispy Kreme on Thursday said it is pausing a planned rollout of selling doughnuts in McDonald's locations nationwide. The doughnut chain said it is 'reassessing the deployment schedule together with McDonald's while it works to achieve a profitable business model for all parties.' Krispy Kreme sells doughnuts in more than 2,400 McDonald's restaurants as of the end of March, and the chain does not expect to add more restaurants in the second quarter of 2025. 'I remain confident in the long-term national opportunity, but we need to work together with them to identify levers to improve sales, simplify operations,' Krispy Kreme CEO Josh Charlesworth said during an earnings call. 'And once we're positioned for profitable growth, we'll expand further.' Charlesworth said that demand dropped below expectations after the initial launch, 'requiring intervention.' The two companies announced the partnership in March 2024, and intended to sell the doughnuts at all McDonald's locations in the US by the end of 2026. The two companies announced the partnership in March 2024, and intended to sell the doughnuts at all McDonald's locations in the US by the end of 2026. McDonald's 'Significantly, by making Krispy Kreme accessible to fans nationwide through this partnership, we expect to more than double our points of access by the end of 2026,' Charlesworth said last year as part of the announcement. 'The partnership accelerates the development of our existing Delivered Fresh Daily channel, creating operating leverage through distribution density and production utilization.' Krispy Kreme also pulled its full-year outlook due to 'macroeconomic softness and the uncertainty around the McDonald's deployment schedule.' Fast-food restaurants have seen sluggish sales due to economic uncertainty weighing on consumers. McDonald's US same-store sales fell 3.6% in the first quarter, the biggest drop since the COVID-19 pandemic in 2020. Fast-food restaurants have seen sluggish sales due to economic uncertainty weighing on consumers. gargantiopa – The results echoed warnings from restaurant chains Domino's Pizza, Chipotle Mexican Grill and Starbucks that Americans were spending less to dine out as inflation and a bleak economic outlook dent consumer confidence. FOX Business' Aislinn Murphy contributed to this report.
Daily Mail
09-05-2025
- Business
- Daily Mail
Major change to McDonald's menus as partner pulls out of thousands of restaurants
McDonald's and Krispy Kreme are putting their partnership on hold in the face of financial hardship for the donut chain. Krispy Kreme announced on Thursday that it would be 'reassessing' its alliance with the fast food giant after announcing its year-over-year net revenue declined nearly $60million, or just over 20 percent. The company sells its donuts at more than 2,400 McDonald's across the US but will not be expanding into additional locations. Krispy Kreme CEO Josh Charlesworth had originally aimed to sell donuts at all of McDonald's US restaurants by 2026. The US is home of more than 13,600 McDonald's restaurants and over 350 Krispy Kreme locations. The donut chain's stock tumbled by 25 percent at yesterday's opening bell. 'I remain confident in the long-term national opportunity, but we need to work together with them to identify levers to improve sales,' Charlesworth told CNBC. Krispy Kreme and McDonald's entered their partnership back in October 2022. The fast-food empire began selling Krispy Kreme donuts at nine restaurants in Louisville, Kentucky, for a limited time later that year. The chains expanded to 160 McDonald's locations in Louisville and Lexington, Kentucky, by February 2023. Krispy Kreme treats became a highly requested menu item at McDonald's, and the donut chain's expansion announcement raised its stock by more than 20 percent at the time. But Krispy Kreme had shown signs of financial struggles early on. The chain lost about 73 percent of its market value over the past year and began noticing 'demand drops' after launching its regional rollout. McDonald's has also suffered major sales slumps after entering the partnership, recently suffering its worst quarter since the Covid-19 pandemic. The recent drop was mainly the result of an outbreak in Quarter Pounders, which left one person dead and over 100 infected. Krispy Kreme also announced the discontinuation of paying dividends to shareholders. This will help the chain save $6 million each quarter. 'Our ability to become a bigger Krispy Kreme requires that we become better, and we are taking swift and decisive action to pay down debt, de-leverage the balance sheet and drive sustainable, profitable growth,' Charlesworth said. The company is working with Walmart and Costco to sell its donuts in their stores after coming to Sam's Club earlier this year. McDonald's is working to bounce back from its financial issues by doubling down on its value meals and McValue platform.
USA Today
08-05-2025
- Business
- USA Today
Krispy Kreme 'reassessing' doughnut rollout at McDonald's amidst economic uncertainty
Krispy Kreme 'reassessing' doughnut rollout at McDonald's amidst economic uncertainty Show Caption Hide Caption Dr Pepper and Krispy Kreme launch new line of doughnuts Dr Pepper is partnering with Krispy Kreme for a limited-time doughnut collaboration launching later this month. Cheddar Krispy Kreme isn't ending its partnership with McDonald's, but it is "reassessing" it. The beloved doughnut company revealed in a May 8 quarterly earnings report that it would be pausing a "phased market rollout" of Krispy Kreme doughnuts to McDonald's restaurants across the country. The announcement comes after the company said its net revenue declined $59.4 million (20.1%), primarily due to a $64.3 million reduction associated with the sale of a majority stake in Insomnia Cookies. Krispy Kreme doughnuts have been available for purchase at over 2,400 McDonald's restaurants, namely in Indiana and Kentucky, as of March 30, 2025. Nationwide availability at participating McDonald's locations was previously forecast for the end of 2026. "The company is reassessing the deployment schedule together with McDonald's while it works to achieve a profitable business model for all parties and does not expect to launch in any additional restaurants in the second quarter of 2025," Krispy Kreme said in a news release. Krispy Kreme says it "continues to believe in the long-term opportunity of profitable growth through the U.S. nationwide expansion including McDonald's." Here's what we know. Krispy Kreme, McDonald's announced partnership in March The idea behind Krispy Kreme's partnership with McDonald's was to make their doughnuts more accessible. Customers who didn't or couldn't go to Krispy Kreme could get a doughnut, or six, at McDonald's. If everything goes as planned, three of Krispy Kreme's most popular doughnuts will be delivered fresh to McDonald's restaurants every day, and they will be available individually or in boxes of six, starting at breakfast and lasting throughout the day. The available flavors include the Original Glazed Doughnut, the Chocolate Iced with Sprinkles Doughnut and the Chocolate Iced Kreme Filled Doughnut. "Partnering with McDonald's on a national scale will provide our fans and doughnut lovers unprecedented daily access to fresh doughnuts and the joy that is Krispy Kreme," Josh Charlesworth, President and CEO of Krispy Kreme, said in a March 2024 news release. The decision to offer select Krispy Kreme products at McDonald's restaurants nationwide followed a "successful test" at 160 McDonald's restaurants in Lexington and Louisville, where "consumer excitement and demand exceeded expectations." Those pilot restaurants continued (and will continue) to serve Krispy Kreme doughnuts up until the nationwide rollout was paused. A list of participating McDonald's locations that serve Krispy Kreme doughnuts can be found here. Contributing: Gabe Hauari, USA TODAY
