McDonald’s and Krispy Kreme have announced the termination of their partnership, set to end on July 2, after a little over a year. This decision comes as Krispy Kreme indicated that the demand for its doughnuts at McDonald’s locations did not generate sufficient returns to cover its costs.
Initially, the collaboration had begun in March 2024 when McDonald’s decided to introduce three varieties of Krispy Kreme doughnuts at select locations, following a successful trial in Kentucky. The doughnuts were available both individually and in six-count boxes. The plan was to expand this offering to McDonald’s nearly 14,000 U.S. stores by the end of 2026. Krispy Kreme’s President and CEO, Josh Charlesworth, had expressed optimism about the initiative, suggesting it would provide customers with unprecedented daily access to their products.
However, after rolling out the doughnuts to just 2,400 McDonald’s locations, the companies recognized the need for profitability on both sides. Alyssa Buetikofer, McDonald’s chief marketing and customer experience officer in the U.S., stated that while the collaboration was strong and the product was of high quality, it was imperative for Krispy Kreme to achieve a viable business model from the venture.
Despite this setback, Krispy Kreme will continue to sell its popular doughnuts through U.S. grocery stores and other high-volume retailers, ensuring that fans of the brand will still have access to their favorite treats.
This development highlights the challenges that fast-food partnerships can face, but it also leaves room for Krispy Kreme to focus on existing retail avenues that have proven successful. With the ongoing demand for their products in grocery formats, there remains a positive outlook for the brand moving forward.