McDonald’s and Krispy Kreme plan to wind down their U.S. partnership by July, citing unsustainable costs tied to the distribution and supply of donuts across McDonald’s restaurant network.
The partnership between Krispy Kreme and McDonald’s was launched last year with the goal of offering Krispy Kreme donuts at all 14,000 McDonald’s locations across the United States. The offering reached only 2,400 stores because logistical and cost challenges mounted.
Krispy Kreme CEO Josh Charlesworth stated that the company made every effort to match costs with demand but it was impossible to achieve. The company also agreed not to sell to other quick-service chains until the end of 2026, further limiting its growth options.
Krispy Kreme pulled its annual guidance in May, saying it was reevaluating rollout plans with McDonald’s. The stock price of Krispy Kreme increased slightly in premarket trading after the company made the announcement despite losing 70% of its value this year.
McDonald’s stated that Krispy Kreme was a small, non-material part of its broader breakfast strategy, which remains a cornerstone of its U.S. business.
The two companies state they will look for new business opportunities but the partnership will end until both parties adjust to increasing input and distribution expenses.
