Krispy Kreme shares crater as company withdraws fiscal 2025 forecasts

Shares of Krispy Kreme (NASDAQ:DNUT) experienced a sharp decline of as much as 30.3%, hitting an all-time low of $3.02 on Thursday, marking the company's worst day on record.

The doughnut chain, which had been riding high on a 14.4% stock increase so far this year, has been hit hard by macroeconomic softness and uncertainties surrounding the deployment schedule of its doughnuts in McDonald's restaurants.

The company announced it would be withdrawing its fiscal 2025 forecasts, citing these ongoing challenges.

Despite previous expansion, Krispy Kreme’s doughnuts are now available in over 2,400 McDonald's locations.

However, the company disclosed that it is currently reassessing the deployment schedule in partnership with the restaurant chain.

As a result, Krispy Kreme does not expect to launch its products in any additional McDonald's restaurants during the second quarter of 2025.

In its first-quarter earnings report, the company revealed a disappointing 15.3% drop in net sales, totaling $375.2 million, missing analyst expectations of $384.4 million, according to data from LSEG.