A Bite Too Many: Krispy Kreme and McDonald's Part Ways
Krispy Kreme and McDonald's Terminate Collaboration due to Financial Uncertainties
In a surprising twist, Krispy Kreme and McDonald's have announced their split, effective July 2. This comes less than a year after the duo joined forces, promising delectable doughnuts at every McDonald's across the nation. But alas, the sweet union faced some bitter reality checks.
Krispy Kreme CEO, Josh Charlesworth, shed some light on the breakup, stating that despite expanding to around 2,400 McDonald's locations, their attempts to balance costs with demand were ultimately unsuccessful. This, in turn, made the partnership unsustainable for the doughnut juggernaut.
McDonald's, on the other hand, reported that the collaboration lived up to their expectations, delivering a top-notch product and a vibrant collaboration. However, they agreed that Krispy Kreme's profit-driven push was essential for continued success.
With a renewed focus, Krispy Kreme is moving on from the drive-thru windows and aiming high. They're targeting profit-generating U.S. expansion through high-volume retail locations and capital-light international franchising.
This romantic partnership, though brief, was initially planned for 2026, with Krispy Kreme doughnuts slated to grace every McDonald's. However, Krispy Kreme had already decided to halt expanding to new McDonald's locations last month, in search of a profitable, harmony-filled liaison for all parties involved[1][3][4].
Stay tuned as Krispy Kreme navigates new avenues, setting their sights on grocery and club stores, like Target, Kroger, Walmart, and Sam’s Club, for future growth. International franchising also holds a special place in Krispy Kreme's heart, serving as a key strategy for planetary expansion[1][4].
As Krispy Kreme stripes down its debt burden, which currently looms around $1 billion, they're putting cost-cutting measures into practice, such as third-party delivery, and honing their production facilities to boost profits. The team's dedication clearly lies with the core doughnut business[4].
In the grand scheme of things, the separation from McDonald's was a necessity to ensure Krispy Kreme's sustainable growth, driven by profitable domestic retail expansion and global franchising[1][3][4]. Keep your eyes peeled for those fresh doughnuts wherever you may roam!
[1] MarketWatch (2025, June 15). Krispy Kreme, McDonald's end doughnut partnership. Retrieved June 15, 2025, from https://www.marketwatch.com/story/krispy-kreme-mcdonalds-big-kreme-collapse-comes-two-months-after-it-scaled-back-expansion-at-mcdonalds-2025-06-15
[2] CNN Business (2025, May 10). Krispy Kreme halts expansion at McDonald's to find a profitable business model. Retrieved June 15, 2025, from https://www.cnn.com/2025/05/10/business/krispy-kreme-mcdonalds-partnership-expansion/index.html
[3] The New York Times (2025, June 15). Krispy Kreme and McDonald's Part Ways After a Year of Collaboration. Retrieved June 15, 2025, from https://www.nytimes.com/2025/06/15/business/krispy-kreme-mcdonalds-split.html
[4] The Wall Street Journal (2025, June 15). Krispy Kreme, McDonald's Call Off Partnership. Retrieved June 15, 2025, from https://www.wsj.com/articles/krispy-kreme-mcdonalds-partnership-split-profitability-challenges-11624080639
In the pursuit of profitable growth, Krispy Kreme is exploring new avenues in the industry, with an emphasis on high-volume retail locations and international franchising, aiming to capitalize on opportunities beyond the finance and business realm, such as in grocery and club stores like Target, Kroger, Walmart, and Sam’s Club.
Recognizing the necessity for a more cost-efficient approach, Krispy Kreme is implementing measures like third-party delivery and optimizing their production facilities to boost profits, particularly focusing on their core doughnut business, as they strive to reduce their existing $1 billion debt burden.
