Krispy Kreme and McDonald’s

The sweet union between Krispy Kreme and McDonald’s, once positioned as a powerful breakfast expansion move, has come to an early and abrupt end.

After months of testing, marketing, logistics, and aggressive expansion efforts, Krispy Kreme has officially exited its partnership with McDonald’s.

The final day for their doughnuts at the Golden Arches is July 2, 2025.

The Rollout Plan That Looked Unstoppable

In late 2023, they began testing doughnuts in 160 restaurants located in Lexington and Louisville, Kentucky.

Consumer response during that early stage was positive.

By March 2024, the two brands launched a national partnership aiming to serve famous doughnuts at all McDonald’s locations by the end of 2026.

By March 30, 2025, more than 2,400 McDonald’s locations, primarily in Indiana and Kentucky, were selling three doughnut varieties:

That initial rollout was branded as a “historic expansion”. Early comments pointed to “daily access to fresh doughnuts” for millions of customers.

Also read: McDonald’s Secret Menu and how to order.

Why the Deal Collapsed Before Summer

Krispy Kreme Doughnuts
Image source: cnbc.com

What started strong did not scale. After initial excitement, demand dipped below projections.

By May 2025, Krispy Kreme paused the national expansion and stated it was reassessing the profitability model alongside McDonald’s.

During a quarterly earnings call, CEO Josh Charlesworth acknowledged that sales volume had dropped, requiring “intervention.” He emphasized that the company failed to “bring our costs in line with unit demand.”

High Costs Crushed Margins

The logistics behind delivering fresh doughnuts daily to thousands of McDonald’s locations across multiple states proved expensive. The labor, distribution, packaging, and waste control overwhelmed projected cost models.

By June, it became clear to both companies that scaling the partnership nationwide would not yield a sustainable return.

On June 24, 2025, the breakup became official.

McDonald’s Response: Strategic, But Unbothered

McDonald's Will Soon Stop Serving Krispy Kreme Doughnuts
Image source: foodandwine.com

McDonald’s issued a carefully worded statement acknowledging the collaboration.

According to Alyssa Buetikofer, Chief Marketing and Customer Experience Officer for McDonald’s USA, the doughnuts “delivered a great, high-quality product,” but the partnership needed to be viable on both sides.

Buetikofer also made clear that they represented a small, non-material part of McDonald’s breakfast business, which remains one of the chain’s most profitable sectors.

What Krispy Kreme Will Do Next

Charlesworth indicated that they will now focus on:

  • Expanding access through high-volume retail outlets
  • Scaling capital-light international franchises
  • Reducing U.S. unit-level delivery complexity

The doughnut chain aims to tap into markets where the cost-to-demand ratio is more favorable.

Instead of piggybacking on McDonald’s kitchens and supply routes, the brand may return to partnering with grocery stores, gas stations, and convenience retailers.

Lessons Learned

This partnership exposed a core vulnerability in quick-service brand alliances: national scale magnifies inefficiencies.

McDonald’s operates at a pace and structure optimized for speed, cost control, and high turnover.

Krispy Kreme’s product demands temperature control, freshness standards, and overnight delivery chains that rarely align with fast food kitchen rhythm.

Timeline Recap: The Krispy Kreme x McDonald’s Deal

  1. October 2022: First regional tests begin in Kentucky
  2. March 2024: Official partnership announced, aiming for full U.S. rollout by end of 2026
  3. March 2025: Over 2,400 locations selling doughnuts
  4. May 2025: Rollout paused due to cost and demand issues
  5. June 24, 2025: Companies announce formal end to deal
  6. July 2, 2025: Last day Krispy Kreme doughnuts sold at McDonald’s

Market Response and Financial Impact

On the day of the announcement:

  • Krispy Kreme (DNUT) stock dropped 1.15%
  • McDonald’s (MCD) stock slipped 2.03%

Customer Reactions: Quiet Disappointment

Unlike other menu changes that spark public outrage or viral campaigns, the exit of Krispy Kreme doughnuts received a muted public reaction. Many customers did not realize the doughnuts were even available at McDonald’s due to:

  • Limited visibility inside stores
  • Few menu promotions
  • Sparse signage outside select locations

For fans who did enjoy the glazed treats during breakfast runs, the loss is a minor letdown.

Last Words

The Krispy Kreme and McDonald’s split tells a larger story about the limits of branded synergy. A big-name alliance can create headlines, but sustainable profit, delivery logistics, and customer turnout decide the outcome.

For now, Krispy Kreme returns to its original roots, controlling its own shelves, trucks, and retail footprint.

And for McDonald’s, the focus returns to core operations. Because the McDonald’s breakfast menu moves fast, feeds millions daily, and only welcomes products that can keep pace, no matter how sweet they taste.

References

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Miloš Nikolovski
Miloš Nikolovski
I am Milos Nikolovski, a journalist who moves with curiosity through stories that matter. I cover politics, food, culture, economics, conflict, and the small details that shape how people live. I spend time on the ground, speak directly to those at the center, and follow facts wherever they lead. I write about markets and ministers, street food and foreign policy, everyday life and shifting power. My work stays close to people and far from noise. I believe good journalism speaks clearly, asks better questions, and never loses sight of the bigger picture.
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