DNUT Deal Dies, Investors Strike Back

Krispy Krispy promised investors they'd be rolling in the dough -- but now it just finds itself in a sticky situation, leaving investors feeling glazed and confused. Once shareholders learned their portfolios had gone stale, they tossed out their Krispy Kreme stock, sending it tumbling twenty-four percent. Now, they're suing for some sweet, sweet justice.

In 2024, Kreme Kreme told Wall Street it was baking up some major profits with a new McDonald's partnership. Executives bragged about strong demand, fat margins, and a national rollout that would light up the balance sheet. Really, though, things weren't fresh.

Demand at McDonalds was falling fast. The partnership was a loser and Krispy Kreme execs were rethinking the partnership. Publicly, though, they kept up the sugar-coated story.

Then, in May 2025, the truth came out. Kreme Kreme reported a 15% revenue drop, a $33 million loss, and admitted they were halting the McDonald's expansion.

Investors dumped their shares faster than a cup of day-old coffee, sending Krispy Kreme shares crashing. Now, more investors are joining the lawsuit.