A POPULAR chain is backtracking on a recent business partnership following disappointing sales.
The brand’s recent collaboration with McDonald’s proved to be a flop after just two months.
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Krispy Kreme Doughnuts is rethinking its nationwide expansion into McDonald’s restaurants.
The two brands announced that they would join forces in a press release in February of this year.
In a May 8 quarterly earnings report, the beloved doughnut chain revealed it would pause the “phased market rollout” of its products to McDonald’s locations across the US.
It did not announce an end to the partnership entirely, however.
The announcement follows a reported net revenue decline of $59.4 million, attributed largely to a $64.3 million reduction linked to the sale of a majority stake in Insomnia Cookies.
As of March 30, 2025, Krispy Kreme doughnuts were available at more than 2,400 McDonald’s restaurants, mostly in Indiana and Kentucky.
Originally, the two brands had planned to expand Krispy Kreme offerings to participating McDonald’s locations nationwide by the end of 2026.
“The company is reassessing the deployment schedule together with McDonald’s while it works to achieve a profitable business model for all parties,” Krispy Kreme said in a press release.
Krispy Kreme went on to confirm that it “does not expect to launch in any additional restaurants in the second quarter of 2025.”
Still, the brand emphasized its belief in the “long-term opportunity of profitable growth through the US nationwide expansion including McDonald’s.”
The partnership, announced in March 2024, aimed to boost accessibility for customers who don’t live near a Krispy Kreme store.
The collaboration followed a successful test at 160 McDonald’s restaurants in Lexington and Louisville, where consumer enthusiasm exceeded expectations.
“We continue to believe in the power of this partnership to bring the joy of Krispy Kreme to more people every day,” the company reiterated.
Under the original expansion plan, McDonald’s restaurants were to receive daily deliveries of three popular doughnuts: the Original Glazed Doughnut, the Chocolate Iced with Sprinkles Doughnut, and the Chocolate Iced Kreme Filled Doughnut.
These treats would be available individually or in boxes of six, starting at breakfast and sold throughout the day.
“Partnering with McDonald’s on a national scale will provide our fans and doughnut lovers unprecedented daily access to fresh doughnuts and the joy that is Krispy Kreme,” Krispy Kreme CEO Josh Charlesworth said in a press release.
For now, McDonald’s locations already serving Krispy Kreme doughnuts will continue doing so.
A list of those participating locations can be found on Krispy Kreme’s website.
Although the expansion is on hold, the partnership remains intact, and Krispy Kreme leadership has left the door open for future growth.
The company says it will revisit expansion plans once it ensures the model is sustainable for both parties.