From Yahoo Finance: 2025-05-20 05:10:00

Krispy Kreme faces a class action lawsuit over halted expansion into McDonald’s restaurants. The company paused the rollout due to low demand and profitability concerns, leading to a 24.71% stock drop. Despite partnerships with major retailers, Krispy Kreme reported a slight decrease in revenue due to consumer softness and fewer doughnut shop transactions.

CEO Josh Charlesworth expressed satisfaction with the McDonald’s partnership but emphasized the need for profitability before further expansion. Krispy Kreme reported a net revenue of $375.2m for Q1, ending on March 30, 2025, with a 1% decline in organic revenue. The company is outsourcing its delivery network and retrofitting production hubs to reduce costs significantly.

Investors who acquired Krispy Kreme securities between February 25 and May 7, 2025, are eligible to participate in the class action lawsuit. Krispy Kreme aims to improve efficiency and reduce costs by outsourcing delivery and retrofitting production hubs strategically. The company reported a slight decrease in revenue due to consumer softness and fewer doughnut shop transactions.

Read more: Krispy Kreme faces investor lawsuit over halted McDonald’s expansion