McDonald’s, Krispy Kreme call it quits amid mounting costs
McDonald’s will no longer sell Krispy Kreme doughnuts.
The two companies said that “after careful consideration” they have jointly decided to end their partnership, effective July 2. The fast-food giant and doughnut maker announced the partnership in March 2024, with plans to have Krispy Kreme doughnuts available at McDonald’s more than 14,000 U.S. locations by the end of 2026. But to date, the donuts were available at only 2,400 McDonald's restaurants.
“Our two companies partnered very closely, each supporting execution, marketing and training, delivering a great consumer experience in approximately 2,400 McDonald’s restaurants,” said Josh Charlesworth, CEO of Krispy Kreme. “Ultimately, efforts to bring our costs in line with unit demand were unsuccessful, making the partnership unsustainable for us.”
Under the terms of the partnership, three Krispy Kreme doughnuts, including its signature “Original Glazed,” were available at participating McDonald’s locations. The doughnuts were delivered fresh daily and could be ordered at the restaurant or via the app and website.
“We were excited and pleased to partner with Krispy Kreme,” said Alyssa Buetikofer, McDonald’s USA’s chief marketing and customer eExperience Officer. “We had strong collaboration with Krispy Kreme and they delivered a great, high-quality product for us, and while the partnership met our expectations for McDonald’s and owner/operators, this needed to be a profitable business model for Krispy Kreme as well.”
Krispy Kreme represented a small, non-material part of McDonald’s breakfast business, which is a core pillar of the chain’s overall business strategy. The company said it remains focused on delivering delicious, affordable and convenient options to help fans start their day.
To drive future sustainable growth, Krispy Kreme said it is focused on making its fresh doughnuts available in more places through its two largest opportunities: Profitable U.S. expansion through high-volume retail points of distribution and international franchise growth.
