Shares of Krispy Kreme, Inc. (DNUT) are plummeting 19.40% in pre-market trading on Thursday following the release of disappointing first-quarter 2025 financial results and several concerning announcements from the company.

The doughnut chain reported quarterly losses of $(0.05) per share, meeting analyst expectations but marking a significant 171.43% decrease from earnings of $0.07 per share in the same period last year. Quarterly sales came in at $375.18 million, missing the analyst consensus estimate of $384.38 million by 2.39% and representing a 15.25% decrease from the previous year. The company's adjusted EBITDA of $24 million also fell short of the estimated $29.3 million, with an adjusted EBITDA margin of 6.4%.

Adding to investor concerns, Krispy Kreme announced it is withdrawing its prior full-year outlook and will not be updating it at this time. Furthermore, the company revealed it will no longer pay quarterly cash dividends to holders of its common stock. These decisions, coupled with the statement that Krispy Kreme does not expect to launch in any additional restaurants in Q2 of 2025, have intensified the negative sentiment surrounding the stock. The company provided a Q2 net revenue outlook of $370 million to $385 million, indicating continued challenges in the near term.