iscover
Share this article on:
Powered by
MOMENTUM
MEDIA
Donut giant Krispy Kreme has revealed that a cyber attack on its network has resulted in operational disruptions.
In an 8-K filing with the US Securities Exchange Commission (SEC), Krispy Kreme disclosed that it had detected unauthorised activity on its systems last month.
“On November 29, 2024, Krispy Kreme, Inc … was notified regarding unauthorised activity on a portion of its information technology systems. The company immediately began taking steps to investigate, contain, and remediate the incident with the assistance of leading cyber security experts,” said the filing.
“Krispy Kreme shops globally are open, and consumers are able to place orders in person, but the company is experiencing certain operational disruptions, including with online ordering in parts of the United States. Daily fresh deliveries to our retail and restaurant partners are uninterrupted.”
Online ordering represents a considerable portion of Krispy Kreme’s sales, with its Q3 2024 financial results showing that it made up 15.5 per cent of its sales and drove 3.5 per cent organic revenue growth for the quarter.
The company said it has launched an investigation into the incident and has informed federal law enforcement, as well as engaged cyber security experts to recover its systems and mitigate further damage.
“As of the date of this filing, the incident has had and is reasonably likely to have a material impact on the company’s business operations until recovery efforts are completed,” the company added.
“The expected costs related to the incident, including the loss of revenues from digital sales during the recovery period, fees for our cyber security experts and other advisors, and costs to restore any impacted systems, are reasonably likely to have a material impact on the company’s results of operations and financial condition.”
Krispy Kreme added that the expenses it faces will be partially covered by its cyber security insurance and that it does not expect the incident will have a “long-term material impact” on its operations and financial standing. Following the disclosure, the share price for Krispy Kreme dropped 2.5 per cent but is slowly recovering.
Currently, no threat actors have claimed responsibility for the incident, nor has Krispy Kreme revealed the nature of the incident.
Be the first to hear the latest developments in the cyber industry.
