McDonald's Corp (NYSE:MCD, ETR:MDO) and Krispy Kreme Doughnuts Inc (NASDAQ:DNUT) have announced they are ending their partnership in the US after just six months of collaboration.
The partnership, which was unveiled in March 2024, aimed to have Krispy Kreme donuts available in all McDonald's US locations by the end of 2026.
The primary reason for ending the partnership was financial unsustainability. Krispy Kreme CEO Josh Charlesworth said in a statement that efforts to align costs with unit demand were unsuccessful, making the partnership unviable for Krispy Kreme.
“Ultimately, efforts to bring our costs in line with unit demand were unsuccessful, making the partnership unsustainable for us,” Charlesworth said.
Alyssa Buetikofer, McDonald’s US chief marketing and customer experience officer, added: “We had strong collaboration with Krispy Kreme and they delivered a great, high-quality product for us, and while the partnership met our expectations for McDonald’s and Owner/Operators, this needed to be a profitable business model for Krispy Kreme as well.”
McDonald’s noted that Krispy Kreme donuts were a minor, non-material part of its breakfast business.