Krispy Kreme, McDonald's End U.S. Doughnut Partnership

Krispy Kreme and McDonald's have agreed to end their U.S. doughnut partnership on July 2, after expanding to just 2,400 of McDonald's over 14,000 locations, due to unsustainable costs and lower-than-expected demand. The collaboration began in March 2024 with an initial plan for a nationwide rollout by 2026 but failed to align costs with actual unit demand, resulting in significant losses for Krispy Kreme and the withdrawal of its annual forecast. Both companies stated the alliance needed to be profitable for Krispy Kreme, and McDonald's reiterated that doughnuts were a minor part of its breakfast business. Krispy Kreme will now prioritize high-volume retail expansion and international franchise growth. The partnership's end comes amid broader market challenges, with declining sales for McDonald's and a sharp drop in Krispy Kreme’s stock value. Both companies expressed appreciation for the collaboration, agreeing that the economics did not justify its continuation.