CHARLOTTE, NC. — Points of access, especially at McDonald’s restaurants, continued to increase for Krispy Kreme, Inc. in the fiscal year ended Dec. 29, 2024, but a cybersecurity incident cut into of fourth-quarter sales, resulting in the company’s stock price plunging.

Net income of $3.10 million, or 2¢ per share on the common stock, compared to a net loss of $38 million in the previous fiscal year. Net revenue of $1.665 billion was down 1.2% from $1.686 billion, which primarily reflected selling a majority ownership stake of Insomnia Cookies. Organic revenue increased 5% to $1.658 million despite an estimated 70 basis points from lost revenue due to the cybersecurity incident.

Charlotte-based Krispy Kreme released fiscal-year results the morning of Feb. 25. The company’s stock price on the Nasdaq closed at $7.13 per share that day, which marked a 22% decline from a close of $9.13 per share on Feb. 24.

Global points of access increased 24% to 17,557. By the end of the fiscal year, the company was reaching over 1,900 McDonald’s restaurants with daily deliveries of Krispy Kreme donuts.

“In the US, we added more than 2,800 new doors with national partners such as McDonald's, Kroger, Publix and Target who are eager to expand with us nationally,” said Joshua Charlesworth, president and chief executive officer, in a Feb. 25 earnings call. “Internationally, company-owned points of access also increased 14%, driven by Australia and Canada. This very morning, we launched daily deliveries to approximately 500 McDonald's restaurants in the greater New York City area and remain on track to reach about 6,000 restaurants by year end.”

He said Krispy Kreme is working with McDonald’s to maximize the rollout phase that will go through the end of 2026. When local marketing has faded at McDonald’s restaurants already offering Krispy Kreme donuts, the donuts were not as visible on the menu and consumer awareness dropped, he said.

“The donuts aren’t actually visible to the customer,” Charlesworth said. “It's not like they're on the counter or anything. They're behind the back there. So, the demand has dipped, actually a little lower than we expected.”

Costco represents a “big opportunity” for Krispy Kreme, he said.

“It wouldn't have been possible without starting the McDonald's rollout,” he said. “Target, which we just started in 2024 following the announcement of McDonald's, continues to be a big expansion driver in 2025.”

In the fourth quarter, Krispy Kreme’s net loss of $22 million compared to net income of $2.6 million, or 2¢ per share, in the same time of the previous year. Fourth-quarter net revenue dropped 10% to $404 million from $451 million, primarily due to selling a majority ownership stake of Insomnia Cookies in the third quarter of 2024. Organic revenue increased 1.8% in the fourth quarter.

Due to the cybersecurity incident, Krispy Kreme experienced operational disruptions, which included online ordering in parts of the United States. In the fourth quarter the company estimated it lost $11 million within its US segment that was related to the incident.

“Insurance is expected to offset a portion of these costs and losses, and we continue to believe this will not have a material impact on the long-term trajectory of the business,” said Jeremiah Ashukian, chief financial officer. “Today, systems are operational following great work from our teams, both internal and external, who worked tirelessly to ensure that our shops were running and that our systems came back online safely and efficiently.”

Krispy Kreme expects to continue to incur costs related to the incident in the 2025 fiscal year, including operational inefficiencies early in the first quarter and costs related to fees for cybersecurity experts and other advisors.

“With regards to the first quarter of 2025, we've seen consumer softness,” Ashukian said. “We're also seeing an impact from weather in the Southeast and fires in California. Taking these into account alongside the divestiture of Insomnia Cookies, startup costs from our US expansion, and the lingering cybersecurity impact in Q1, we expect the first-quarter net revenue will be between $370 million and $390 million with $25 million to $30 million in adjusted EBITDA.”