Krispy Kreme doughnut deliveries have been disrupted by a cyberattack, the company says.
Krispy Kreme stores are open for in-person orders, but the company is “experiencing certain operational disruptions, including with online ordering in parts of the United States,” it says in a report filed Wednesday with the Securities and Exchange Commission.
In the report, Krispy Kreme said it learned about “unauthorized activity on a portion of its information technology systems” on Nov. 29. The company “immediately began taking steps to investigate, contain, and remediate the incident with the assistance of leading cybersecurity experts,” the company said in the report.
Online ordering and delivery of doughnuts is unavailable in some areas, but “daily fresh deliveries to our retail and restaurant partners are uninterrupted,” Krispy Kreme said in the report. Krispy Kreme began offering doughnuts in some McDonald’s locations earlier this year.
Customers hankering for Krispy Kreme doughnuts can got to the company website to find a nearby grocery or convenience store that receives deliveries.
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“The Company, along with its external cybersecurity experts, continues to work diligently to respond to and mitigate the impact from the incident, including the restoration of online ordering, and has notified federal law enforcement.”
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The investigation of the breach continues and the company doesn’t yet know the full impact of the incident. But, the incident will likely have “a material impact on the Company’s business operations until recovery efforts are completed,” Krispy Kreme said. However, the incident isn’t expected to have “a long-term material impact” on operations and finances, the company said.
Expected costs include lost revenue from online sales, costs for cybersecurity experts and any system restoration costs. Cybersecurity insurance “is expected to offset a portion of the costs of the incident,” the company said.
Shares of the company were down about 2% Wednesday and are down 33% so far this year.
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