Krispy Kreme Online Orders Disrupted by Cyber Incident
Krispy Kreme is currently facing challenges due to a cyber-incident that has disrupted online orders, according to a recent filing with the Securities and Exchange Commission (SEC). The doughnut maker and coffeehouse chain based in the US acknowledged that the incident is impacting its operations and may have a significant effect on its business until full recovery is achieved.
This cyber event, which includes digital sales, advisory fees, and recovery costs, is also expected to impact the company’s financial standing. In fact, digital orders made up 15.5% of Krispy Kreme’s total sales in the third quarter financial results of 2024.
While customers in certain parts of the US may currently be unable to place online orders, Krispy Kreme’s shops remain open worldwide for in-person purchases. The company continues to make daily fresh deliveries of doughnuts to retailers and restaurants without interruption.
Despite these challenges, Krispy Kreme reassured stakeholders that it does not foresee a long-term, material impact on its financial condition or operations. The company’s cyber insurance policy is expected to help cover some of the costs associated with the incident.
The unauthorized activity on the company’s IT systems was detected on November 29, 2024, prompting Krispy Kreme to investigate and remediate the issue with the help of cybersecurity experts. Efforts to restore online ordering services are ongoing, and law enforcement has been notified of the incident.
William Wright, CEO of Closed Door Security, noted that the fact that Krispy Kreme’s cafes and suppliers appear unaffected suggests that the attackers were prevented from accessing operational technology within the company’s environment. While the full scope and impact of the incident are still being determined, Krispy Kreme is working diligently to address the situation.
As the investigation continues, customers can still visit Krispy Kreme locations to enjoy their favorite treats in person. Stay tuned for updates as the company works to resolve the cyber-incident and restore online services.
