McDonald’s and Krispy Kreme End U.S. Donut Deal Amid High Costs
McDonald’s and Krispy Kreme are officially ending their U.S. donut partnership by July 2025, citing rising costs and limited rollout success. Originally announced in March 2024, the deal aimed to bring Krispy Kreme donuts to all 14,000 McDonald’s locations, but the treats only made it to 2,400 stores nationwide. According to Krispy Kreme CEO Josh Charlesworth, the economics just didn’t work out: “Efforts to bring our costs in line with unit demand were unsuccessful.”
As part of the partnership, Krispy Kreme had also agreed not to supply donuts to other fast-food chains until the end of 2026. That restriction is now lifted. Though McDonald’s called the partnership non-material to its breakfast business, the company is continuing to experiment with new offerings and promotions to drive morning traffic. Krispy Kreme, which has seen its stock fall roughly 70% this year, had already withdrawn its annual forecast in May while reassessing the program.
The collapse of the deal highlights the growing financial pressures quick-service brands face amid inflation, supply chain shifts, and changing consumer habits. Both companies say they remain focused on strengthening core business strategies — just no longer together.
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