Krispy Kreme, Inc. (NASDAQ: DNUT) and McDonald's USA have jointly announced the decision to end their partnership, effective July 2, 2025. The partnership saw Krispy Kreme's products being offered in approximately 2,400 McDonald's restaurants. Despite strong collaboration and a great consumer experience, the companies cited an unsustainable business model as the reason for the partnership's termination.
Krispy Kreme's CEO, Josh Charlesworth, mentioned that efforts to align costs with unit demand were unsuccessful, leading to the partnership becoming unsustainable for the company. As a result, Krispy Kreme is now focusing on expanding its fresh doughnuts to more locations, with a particular emphasis on profitable U.S. expansion through high-volume retail points of distribution and capital-light international franchise growth.
Notably, Krispy Kreme represented a small, non-material part of McDonald's breakfast business, which remains a core pillar of McDonald's business strategy. The company is committed to delivering delicious, affordable, and convenient breakfast options to its customers.
Krispy Kreme, headquartered in Charlotte, N.C., operates in more than 40 countries and has a rapidly growing digital business with over 17,500 fresh points of access. McDonald's USA serves millions of customers every day through its approximately 13,500 U.S. restaurants, with 95% of them being owned and operated by independent business owners.
As the partnership comes to an end, both companies are refocusing their strategies to drive future sustainable growth in their respective businesses. Today the company's shares have moved -1.87% to a price of $2.62. If you want to know more, read the company's complete 8-K report here.
