Krispy Kreme affected by cyberattack, daily fresh doughnuts still available

US doughnut chain Krispy Kreme has become the victim of a cyberattack. Although the attack is causing a headache for day-to-day business, shops remain open.

In an 8-K Filing addressed to the Securities and Exchange Commission (SEC), Krispy Kreme states that the company noticed ‘unauthorized activity’ on a portion of its corporate network on November 29.

“The company immediately began taking steps to investigate, contain, and remediate the incident with the assistance of leading cybersecurity experts,” the breach notification says.

Regardless of the cyberattack, Krispy Kreme shops all over the world remain open for business and daily fresh deliveries to the company’s retail and restaurant partners are uninterrupted. However, the doughnut seller is experiencing ‘certain operational disruptions’. Ordering your favorite doughnuts online, for example, is currently out of the question.

Krispy Kreme says it’s continuously working alongside external cybersecurity experts to respond to and mitigate the impact from the incident. Law enforcement agencies have also been notified. “As the investigation is ongoing, the full scope, nature, and impact of the incident are not yet known,” he notice says.

The incident already has and will likely have a material impact on the company’s financial results in the short term. Krispy Kreme expects to lose revenues from digital sales, as well as to make additional costs to recover from the incident, including fees for calling in external cybersecurity experts and advisors, and costs for restoring the impacted systems.

“The company holds cybersecurity insurance that is expected to offset a portion of the costs of the incident. The company does not expect this will have a long-term material impact on its results of operations and financial condition,” the 8-K Filing states.

Krispy Kreme is an American multinational doughnut company that was founded in 1937. As of today, the North Carolina-based company has over 1,400 stand-alone doughnut shops and in-store retail locations across 40 countries. Krispy Kreme employs almost 23,000 employees and had al revenue of almost $1.7 billion in 2023.

The company’s stock fell 2% when news of the attack was released.

So far, no ransomware gang has claimed responsibility for the cyberattack.