Krispy Kreme fans were looking forward to picking up their favorite doughnuts at McDonald’s locations across the country. But now, that excitement has taken a bit of a hit. The company has decided to put the brakes on its big rollout with the fast-food giant.
Let us break down what this means for you and why it is happening.
Why is Krispy Kreme stopping its McDonald’s expansion?
Krispy Kreme announced that it is “reassessing the deployment” of its partnership with McDonald’s. What does that mean in simple terms? The company is hitting pause. It is no longer expanding the program to more McDonald’s locations, at least for now.
- The partnership was originally supposed to reach all 13,000 McDonald’s restaurants in the U.S. by the end of 2026.
- Right now, it had only made it to 2,400 locations before the pause.
- Krispy Kreme said the break will help them “achieve a profitable business model for all parties.”
In short, the deal might not be as sweet as it seemed at first. The company wants to make sure the numbers make sense before going further.
What does this mean for Krispy Kreme doughnuts at McDonald’s?
If you were hoping to grab a Krispy Kreme doughnut with your McMuffin anytime soon, you might have to wait longer than expected.
- No new McDonald’s locations will start selling Krispy Kreme doughnuts during the second quarter of this year.
- The current locations that already have them will likely keep offering them, but for the rest of the country, the rollout is officially paused.
This is definitely a letdown for doughnut lovers who were looking forward to more convenient access.
What is going on with Krispy Kreme’s business?
To put it simply, Krispy Kreme is going through some changes. The company is trying to clean up its finances and focus on long-term stability.
Here are a few key things they shared:
- Krispy Kreme’s stock dropped 25% after the news came out.
- Over the past year, the company’s stock has lost 73% of its value.
- It also announced that it will stop paying dividends to shareholders, saving about $6 million every quarter.
CEO Josh Charlesworth put it this way:
“Our ability to become a bigger Krispy Kreme requires that we become better.”
He said they are taking “swift and decisive action” to pay down debt and improve their financial health.
What led to the pause in the Krispy Kreme and McDonald’s partnership?
The idea seemed promising at first. Krispy Kreme started testing its doughnuts in McDonald’s restaurants in Kentucky back in 2022. The reaction was very positive, and by last year, McDonald’s said demand was even higher than expected.
But the fast-food world has changed. Both companies are now dealing with new challenges:
- McDonald’s just had its worst quarter since the pandemic started, as many customers are cutting back on spending.
- Krispy Kreme is also facing pressure to stay profitable as the economy shifts.
Now, the two are stepping back to make sure the partnership still makes sense moving forward.
