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Krispy Kreme Faces Federal Securities Lawsuit Over McDonald’s Demand Disclosures

Krispy Kreme logoKrispy Kreme
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A federal securities lawsuit alleges Krispy Kreme insiders misrepresented or failed to disclose that demand at McDonald’s locations declined materially after the initial launch. It claims that McDonald’s demand drove falling average sales per door per week, that the partnership was not profitable, and that risks to maintaining the partnership were not properly disclosed. The suit also alleges associated company statements and expansion plans were misleading.

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