Krispy Kreme, Inc. (DNUT) saw its stock price plummet by 5.60% in Wednesday's intraday trading session, following the release of disappointing first-quarter earnings results. The iconic doughnut maker's shares continued their downward trend, adding to a year-to-date decline of 69%.

The company reported a first-quarter net revenue of $375.2 million, marking a 15.3% year-over-year decrease. More alarmingly, Krispy Kreme posted an adjusted net loss of $0.05 per share, reversing the $0.07 profit recorded in the same quarter last year. These results fell short of Wall Street expectations, triggering a sell-off in the stock.

In a move that further rattled investors, Krispy Kreme announced the suspension of its regular quarterly dividend. This decision was made to address declining sales and tackle the company's substantial balance sheet debt, which stands at $993 million with a net leverage ratio of 6.1. The company's struggles are compounded by softening consumer demand and challenges in its global expansion strategy, including lower-than-expected sales from its distribution deal with McDonald's. As Krispy Kreme grapples with these issues, the stock is likely to remain highly volatile in the near term.