Krispy Kreme is warning tens of thousands of Americans that they are now at risk of identity theft and fraud following a major cybersecurity incident.

In a new filing with the Office of the Maine Attorney General, the doughnut and coffeehouse giant says it has discovered a computer hack affecting 161,676 employees, former employees and members of their families.

In a statement, the firm says that an unknown actor gained unauthorized access to the retailer’s information technology systems, stealing multiple types of data.

According to Krispy Kreme, the attacker may have siphoned sensitive personal information, including names, Social Security numbers, dates of birth and driver’s license or state ID numbers. The thief may have also copied financial data such as financial account access records, credit or debit card entries, along with security codes, as well as usernames and passwords to financial accounts.

Other customer data that might have been seized include digital signatures, usernames and passwords, email addresses and passwords, biometric records, USCIS or Alien Registration Numbers, US military ID numbers, medical or health records and health insurance entries.

“On November 29, 2024, Krispy Kreme became aware of unauthorized activity on a portion of its information technology systems. Upon learning of the unauthorized activity, we immediately began taking steps to investigate, contain, and remediate the incident with the assistance of leading cybersecurity experts.

On May 22, 2025, our investigation into the incident determined that certain personal information was affected. There is no evidence that the information has been misused, and we are not aware of any reports of identity theft or fraud as a direct result of this incident.”

Krispy Kreme says it abruptly sent letters of notification to affected customers to provide more information about the cybersecurity incident, while offering free credit monitoring and identity protection services.

The firm says it is revamping its security protocols “to further protect the privacy of the data entrusted to us.”

Follow us on X, Facebook and Telegram

Don’t Miss a Beat – Subscribe to get email alerts delivered directly to your inbox

Check Price Action

Surf The Daily Hodl Mix

&nbsp

Disclaimer: Opinions expressed at The Daily Hodl are not investment advice. Investors should do their due diligence before making any high-risk investments in Bitcoin, cryptocurrency or digital assets. Please be advised that your transfers and trades are at your own risk, and any losses you may incur are your responsibility. The Daily Hodl does not recommend the buying or selling of any cryptocurrencies or digital assets, nor is The Daily Hodl an investment advisor. Please note that The Daily Hodl participates in affiliate marketing.

Generated Image: Midjourney

Following the publication of its first-quarter results on Thursday morning, investors bailed from Krispy Kreme (DNUT -16.56%) stock.

On Friday, it was apparent that analysts were finding the stock distasteful, too. On the back of two pundit price target cuts, the donut slinger’s share price eroded again, posting a Friday decline of more than 16%. Meanwhile, the S&P 500 (^GSPC -0.07%) traded essentially flat on the day.

A pair of price target chops

Well before market open that day, Evercore ISI analyst David Palmer got the ball rolling with an updated take on Krispy Kreme. He changed his price target to $3 per share, quite the modification given his previous level was $9. He didn’t change his recommendation on the beleaguered comestibles company, though, as he still rates it an in-line (hold, in other words).

Image source: Getty Images.

According to reports, Palmer cited several troubling factors in his latest Krispy Kreme take. The state of the company’s deal with fast food king McDonald’s is one (Krispy Kreme has paused it for now), while ongoing weakness in the general U.S. retail sector should impact the donut maker — which draws around 30% of its revenue from these outlets.

Citigroup is also reducing its expectations for Krispy Kreme, as analyst Jon Tower lowered his fair value assessment on the stock. In his view, it’s worth $3.60 per share these days, down from the former $4.75 target. Like his Evercore ISI peer, however, Tower also maintained a neutral recommendation on the shares.

Sour taste

The food industry is tough, as it’s susceptible to weakness in consumer sentiment, and is often dependent on trends. I don’t see any trend favoring Krispy Kreme, and the McDonald’s situation is awfully disheartening. I can’t blame any investor for shunning this stock now.

Shares of Krispy Kreme (DNUT -25.64%) plunged 24.4% this week through Thursday, according to data from S&P Global Market Intelligence.

Krispy Kreme delivered a first-quarter earnings report that fell well short of expectations. Even though a decline in revenue was expected, due to a divestiture last year, Krispy Kreme’s revenue came in even worse as the company continued to invest in expansion.

As a result, profits reversed to losses, forcing management to take on more debt and cut the company’s dividend.

When the dividend becomes a donut

In the first quarter, Krispy Kreme saw revenue decline 15.2%, although organic revenue was down a more modest 1%. Still, that figure missed expectations by a fair amount. Even though sales came in soft, the company continued to invest in growth, expanding its global points of access by 21.4% relative to last year.

As a result of the softer-than-expected revenue per store but increased costs of that store growth, adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) fell a severe 58.8%, and adjusted net income fell from an $11.3 million profit last year to an $8.8 million loss.

Describing the results, management pointed to a “challenged” consumer, specifically noting, “macroeconomic, weather, and inflationary factors.”

As a result of its desire to keep growing despite sinking sales per store, management decided to cut the company’s dividend payout to zero, even as it took on more debt.

Image source: Getty Images.

Aside from the dividend cut, another troubling aspect was that Krispy Kreme said that it would not expand into any more McDonald’s (NYSE: MCD) restaurants in the second quarter of this year. In the release, management said, “The Company is reassessing the deployment schedule together with McDonald’s while it works to achieve a profitable business model for all parties.”

This is somewhat troubling as the McDonald’s partnership had been touted by management as a key potential growth driver; however, it looks as though the arrangement might not yet be profitable for Krispy Kreme at current sales levels.

Are cash-strapped consumers skipping dessert?

One potential bright spot was that management guided for things to improve a bit in the second quarter, with revenue guidance between $370 million and $385 million, along with adjusted EBITDA of $30 million to $35 million.

So, at least things aren’t expected to get worse. That being said, Krispy Kreme is still making losses, and its debt has grown to $935 million as of the end of the quarter.

While the slashed dividend will help conserve cash, the high debt load combined with a highly uncertain macroeconomic picture makes Krispy Kreme a risky bet, even after its 24.4% decline this week.