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DNUT.US
id: 1598
Krispy Kreme ($DNUT) McDonald’s Rollout Collapse and Misleading Growth Claims Case
W.D. North Carolina
Court3:25-cv-00332
Case number02/25/2025
Class period Start05/07/2025
Class period End07/15/2025
Lead Plaintiff motion deadline- $DNUT investors filed a claim against Krispy Kreme for overstating the success of its McDonald’s partnership and misleading investors about growth and profitability.
- After withdrawing its 2025 outlook and reporting a major revenue drop, $DNUT fell 24.71% on May 8, 2025.
Case Details:
In 2022, Krispy Kreme began testing doughnut sales at select McDonald’s locations and announced plans for a nationwide expansion in 2024. Throughout early 2025, the company told investors that the rollout was going well and projected strong revenue growth. It claimed the partnership validated its business model and expected expansion to over 1,000 locations.
Behind the scenes, demand at McDonald’s locations had already started to fall. After the initial marketing push, sales dropped, and the partnership turned unprofitable. Executives did not share that average sales per store were declining or that McDonald’s would delay further rollout plans.
On May 8, 2025, Krispy Kreme reported Q1 revenue had dropped 15.3%, driven by reduced demand and soft consumer traffic. The company also announced it was withdrawing its full-year guidance and pausing its McDonald’s expansion, citing uncertainty about the rollout schedule.
Following this, $DNUT dropped 24.71% that day.
Based on these events, $DNUT investors filed a claim against Krispy Kreme, accusing the company of the following:
- It misled investors about the performance and profitability of the McDonald’s partnership.
- It failed to disclose declining demand and hidden risks that led to a pause in national expansion.
Considering all the representations, investors believe Krispy Kreme inflated its growth story while the McDonald’s deal was quietly falling apart.
Case Status
Lead Plaintiff Appointment
Alleged Offence
Misleading Statements,
Omissions
Suspected Party
Directors,
Management
Security Type
Stocks
Trade Direction
Long
Shock Event Date
05/08/2025
Filing date
05/16/2025
Lead Plaintiff Deadline
07/15/2025