Krispy Kreme (NASDAQ: DNUT), the iconic doughnut and coffee chain, has fallen victim to a significant cyberattack that began in late November. The attack disrupted portions of the company’s IT systems, particularly its online ordering functionality in the United States.

While the company emphasized that its physical locations and fresh deliveries remain unaffected, it acknowledged material disruptions to its digital operations. Krispy Kreme’s filing with the Securities and Exchange Commission detailed efforts to address a breach exposing vulnerabilities in its technology infrastructure, crucial as digital orders made up 15.5% of revenue in Q3 2024.

In response, the company enlisted leading cybersecurity experts and notified federal law enforcement to assist in its recovery efforts.

The cyberattack, which has not yet been claimed by any group, comes as the company balances ambitious expansion plans, including its partnership with McDonald’s and divestiture of Insomnia Cookies. This unexpected setback has added financial pressure, with Krispy Kreme forecasting a “reasonable” financial impact due to lost digital sales, recovery costs, and ongoing cybersecurity expenses.

Why It Matters: This incident underscores the rising threat of cyberattacks on retail and food service businesses, which are increasingly reliant on digital operations for revenue. For Krispy Kreme, the attack has disrupted a key growth channel—online sales—potentially slowing its broader business momentum. Beyond financial repercussions, the attack reveals the vulnerabilities in the digital infrastructure of even well-established brands. With no group claiming responsibility, the situation raises questions about the potential scope of the breach and whether sensitive data was compromised.

• Impact on Online Sales: Krispy Kreme is currently suffering a cyberattack that has disrupted online ordering, a channel that represented 15.5% of its revenue in Q3 2024. Financial implications include lost sales and significant recovery costs.

• Operational Continuity: While in-store purchases and deliveries to retail partners like McDonald’s continue unaffected, the digital disruption highlights reliance on a secure IT infrastructure to sustain modern business operations.

• Unclear Scope of Attack: Krispy Kreme has not disclosed whether this was a ransomware attack or another form of breach. The absence of claims from hacking groups leaves the nature and scope of the incident uncertain.

• Industry-Wide Trend: Krispy Kreme, one of several high-profile retailers recently targeted, is working with cybersecurity experts and law enforcement to mitigate the breach, restore operations, and address potential vulnerabilities uncovered by the ongoing investigation.

Go Deeper -> Krispy Kreme is Struggling to Fulfill Online Orders After it was Hit with a Cyberattack – CNN

Krispy Kreme Cyberattack Impacts Online Orders and Operations – Bleeping Computer

Online Ordering at Krispy Kreme Disrupted by Cyberattack – The Record