Why Did Krispy Kreme's Stock Plunge 13.42%?

On August 7, 2025, Krispy Kreme's stock experienced a significant drop of 13.42% in pre-market trading, reflecting a challenging period for the company.

Krispy Kreme's second-quarter results were notably impacted by the termination of its partnership with McDonald's USA. The company reported a year-over-year decline of 0.8% in organic revenue, which contributed to a widening loss for the quarter. The end of the partnership with McDonald's, which was cited for profitability issues, has left Krispy Kreme facing significant challenges in maintaining its market position.

In the second quarter of 2025, Krispy Kreme Donuts (DNUT) had the weakest performance within the RIFC 50 Index, losing 40.3% of its market value. This decline underscores the company's struggles in the current market environment, where it has been unable to maintain its market share and profitability.