Krispy Kreme sees continued costs in 2025 from 2024 cybersecurity incident

“As previously disclosed, unauthorized activity on a portion of our information technology systems resulted in the company experiencing certain operational disruptions, including with online ordering in parts of the U.S. Online ordering, retail shops, and core business functions are now fully operational. The incident materially affected the company’s business operations and is reasonably likely to materially impact the company’s results of operations and financial condition. In the fourth quarter of 2024, we incurred approximately $3 million of remediation expenses related to the 2024 Cybersecurity Incident. In addition, we estimate that we lost revenue within our U.S. segment in an amount of $11 million related to the incident with a corresponding estimated $10 million impact on Adjusted EBITDA (includes margin on the aforementioned lost revenues, as well as operational inefficiencies). We expect to continue to incur costs in full year 2025 related to the incident, including operational inefficiencies early in the first quarter and costs related to fees for our cybersecurity experts and other advisors. The company holds cybersecurity insurance that is expected to offset a portion of the losses and costs from the incident.”