Krispy Kreme Slumps as Dividends End, McDonald’s Plan Paused (2)

Krispy Kreme Inc. shares hit a record low after saying it will no longer pay quarterly cash dividends in order to pay down its debt and focus on growth.

The doughnut maker is also pausing the expansion of its partnership with McDonald’s Corp. in the second quarter and withdrew its profit guidance, saying it won’t provide an updated outlook at this time due to macroeconomic weakness and uncertainty over the tie-up. Shares fell as much as 30% on Thursday, the most since late February.

“We are shocked by the speed at which the story fell apart,” Truist Securities analysts ...