CHARLOTTE, NC, and CHICAGO — In a joint statement, Krispy Kreme and McDonald’s announced the shuttering of their partnership, effective July 2.
“Our two companies partnered very closely, each supporting execution, marketing, and training, delivering a great consumer experience in approximately 2,400 McDonald’s restaurants,” said Josh Charlesworth, CEO of Krispy Kreme. “Ultimately, efforts to bring our costs in line with unit demand were unsuccessful, making the partnership unsustainable for us.”
The nationwide partnership between Krispy Kreme and McDonald’s was first announced March 2024. The deal expanded the donut brand’s distribution of its products to the fast-food chain’s restaurants across the US.
“We were excited and pleased to partner with Krispy Kreme,” said Alyssa Buetikofer, McDonald’s USA’s chief marketing and customer experience officer. “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.”
With the conclusion of this agreement, Krispy Kreme will pivot its growth strategy through expansion via high-volume retail points of distribution and capital-light international franchise growth.
This announcement follows the donut company’s $75 million sale of its remaining stakes in Insomnia Cookies. Charlesworth cited the same growth approaches as part of the decision.
