In a surprising move, McDonald’s and Krispy Kreme announced on Tuesday that they are ending their doughnut partnership on July 2, just over a year after its launch. The collaboration, which began in March 2024, aimed to bring Krispy Kreme’s famous doughnuts to McDonald’s locations across the U.S. by the end of 2026. However, the companies revealed that the business model was ultimately “unsustainable” for Krispy Kreme.
Why Did the Partnership Fail?
Despite initial excitement, the deal struggled to meet profitability goals for Krispy Kreme. McDonald’s had successfully tested the doughnuts in select locations, including Kentucky, before expanding. The fast-food giant offered three varieties of Krispy Kreme doughnuts—sold individually or in six-packs—as part of its breakfast menu.
However, Krispy Kreme CEO Josh Charlesworth stated that the company couldn’t align costs with demand, making the partnership unviable:
“Ultimately, efforts to bring our costs in line with unit demand were unsuccessful, making the partnership unsustainable for us.”
Meanwhile, McDonald’s emphasized that the collaboration met its expectations but acknowledged that Krispy Kreme needed a profitable model. Alyssa Buetikofer, McDonald’s USA’s Chief Marketing and Customer Experience Officer, said:
“We had strong collaboration with Krispy Kreme, and they delivered a great, high-quality product… but this needed to be a profitable business model for Krispy Kreme as well.”
What’s Next for Both Brands?
Krispy Kreme had already paused its nationwide rollout in May 2024, signaling early struggles. The doughnut chain now plans to focus on profitable expansion through high-volume retail partnerships and international franchising.
For McDonald’s, the end of the partnership has minimal impact, as Krispy Kreme was only a small part of its breakfast business—a segment the company considers a “core pillar” of its strategy.
Final Thoughts
While the McDoughnut experiment didn’t last, both companies remain strong in their respective markets. McDonald’s will likely continue innovating its breakfast offerings, while Krispy Kreme shifts focus to more sustainable growth strategies.
FAQs: McDonald’s and Krispy Kreme End Doughnut Partnership
1. Why did McDonald’s and Krispy Kreme end their partnership?
The partnership ended because the business model was not profitable enough for Krispy Kreme. Despite strong collaboration, the costs of supplying doughnuts to McDonald’s locations did not match demand, making the deal unsustainable.
2. When will the partnership officially end?
The partnership will end on July 2, 2024, just over a year after it began in March 2024.
3. Was the partnership successful at all?
McDonald’s stated that the partnership met its expectations, and Krispy Kreme provided high-quality doughnuts. However, Krispy Kreme could not make the model profitable for its own business.
4. Did McDonald’s sell Krispy Kreme doughnuts nationwide?
No, the nationwide rollout was paused in May 2024 after initial tests in select markets like Kentucky. The full expansion was planned for 2026 but was canceled.
5. What types of Krispy Kreme doughnuts were sold at McDonald’s?
McDonald’s offered three varieties of Krispy Kreme doughnuts, available individually or in boxes of six.
6. Will McDonald’s replace Krispy Kreme with another doughnut brand?
There’s no official announcement yet, but McDonald’s may explore other breakfast partnerships in the future.
7. How will this affect Krispy Kreme’s business?
Krispy Kreme plans to focus on profitable expansion through retail partnerships and international franchising instead.
8. Did this partnership impact McDonald’s breakfast sales?
No—McDonald’s stated that Krispy Kreme doughnuts were a small, non-material part of its breakfast business.
9. Can I still get Krispy Kreme doughnuts at McDonald’s?
Only until July 2, 2024. After that, they will no longer be available at McDonald’s locations.
10. Where can I still buy Krispy Kreme doughnuts?
You can find Krispy Kreme doughnuts at their standalone stores, grocery retailers, and other partner locations.