Krispy Kreme has reported disruptions to its doughnut deliveries due to a cyberattack. While the company’s stores remain open for in-person orders, there are issues with online ordering in certain parts of the United States. The company revealed in a report to the Securities and Exchange Commission that it detected unauthorized activity in its IT systems on November 29. Krispy Kreme immediately took action to investigate and address the issue, working with cybersecurity experts.
Although online ordering and deliveries are affected in some areas, the company confirmed that its daily fresh deliveries to retail and restaurant partners have not been interrupted. Krispy Kreme also began supplying doughnuts to some McDonald’s locations earlier this year.
Customers craving Krispy Kreme doughnuts can visit the company’s website to locate a nearby grocery or convenience store that receives deliveries.
The company, in collaboration with external cybersecurity experts, is actively working to address and reduce the impact of the incident. This includes efforts to restore online ordering, and federal law enforcement has been notified.
The investigation into the breach is still ongoing, and the company has not yet determined the full extent of the damage. However, Krispy Kreme anticipates that the incident will likely have a significant effect on its business operations until recovery is complete. Despite this, the company does not expect the incident to have a long-term major impact on its operations or finances.
The company anticipates costs related to lost revenue from online sales, fees for cybersecurity experts, and expenses for system restoration. Krispy Kreme mentioned that cybersecurity insurance should help cover some of the costs incurred by the incident.
On Wednesday, the company’s shares fell by approximately 2%, and they have decreased by 33% overall this year.