Krispy Kreme McDonald’s Partnership Ends: What Happened & Why

The Krispy Kreme–McDonald’s partnership seemed like a natural fit for breakfast, but it unraveled in just 16 months. After ending on July 2, 2025, about 2,400 locations lost their doughnut supply, exposing how operational complexity and shifting demand can break even the most promising brand matchups.

Partnership launched: March 2024 ·
McDonald’s locations reached: ~2,400 ·
Termination announced: June 24, 2025 ·
Effective end date: July 2, 2025 ·
Duration: ~16 months ·
Reason cited: Not profitable / unsustainable operating costs

Six key facts capture the arc of the partnership, from announcement to end. One pattern: both sides blamed profitability, but the burden fell unevenly.

The implication: what looked like a win-win on paper turned into a losing proposition for both sides.

What happened to Krispy Kreme and McDonald’s partnership?

Announcement details

• On June 24, 2025, both companies issued a joint statement confirming the partnership would end July 2, 2025 (CNBC).
• Krispy Kreme said the relationship “met McDonald’s standards” but that the economics didn’t work for an ongoing rollout (TODAY).
• A Fox Business report confirmed that Krispy Kreme had paused expansion in early May 2025 while reassessing deployment (Fox Business).

Timeline of the partnership

• March 2024: Krispy Kreme and McDonald’s announce national partnership to sell doughnuts at participating restaurants (Fox Business).
• Late 2024: Expansion reaches ~2,400 locations (CNBC).
• Early May 2025: Krispy Kreme pauses rollout due to demand falling below expectations (Restaurant Dive).
• June 24, 2025: Mutual termination announced (Restaurant Dive).
• July 2, 2025: Official end; doughnuts removed from menus (KTLA).

Number of locations involved

• At peak, about 2,400 McDonald’s restaurants across the U.S. sold Krispy Kreme doughnuts (CNBC).
• The plan had originally aimed for a wider national footprint, but that expansion never materialized (Fox Business).

The pattern: the partnership’s reach fell well short of the ambitious national rollout both companies had pitched.

Why did Krispy Kreme and McDonald’s end their partnership?

Financial reasons

• McDonald’s said the collaboration “was not as profitable as expected” (Investopedia).
• Krispy Kreme described the arrangement as “unsustainable to scale profitably” (Investopedia).
• In its earnings call, Krispy Kreme reported $28.9 million in costs tied to the partnership, including lease impairment and termination fees (Fortune).

Operational challenges

• Krispy Kreme CEO Josh Charlesworth said early success could not be sustained (Restaurant Dive).
• Demand fell after the initial marketing launch, forcing a reassessment (Nation’s Restaurant News).
• The companies had worked closely on execution and training, but the logistics of delivering fresh doughnuts daily to 2,400 locations proved harder to scale than anticipated (Restaurant Dive).

Supply chain issues

• Krispy Kreme admitted “efforts to bring costs in line with unit demand were unsuccessful” (CNBC).
• The supply chain model — making doughnuts fresh overnight and delivering before breakfast — left little room for error. Unsold inventory became a cost burden.

The catch: the daily fresh-delivery model that made Krispy Kreme distinctive also made it financially unsustainable at scale.

Why is Krispy Kreme declining?

Business performance trends

• After the partnership end was announced, Krispy Kreme shares jumped 17% on news of turnaround traction (Fortune).
• The company had been under pressure from declining same-store sales and rising ingredient costs.
• Fortune reported that the McDonald’s tie-up contributed to a broader revenue decline in the donut maker’s Q2 2025 results.

Impact of partnership end

• Losing McDonald’s distribution meant losing a high-visibility channel, but it also removed a costly operational burden.
• Krispy Kreme’s stock reaction suggests investors saw the end as a net positive for the company’s bottom line.

Turnaround efforts

• Krispy Kreme is refocusing on its core retail stores, grocery sales, and e-commerce channels (CNBC).
• No immediate plans for another major fast-food deal have been announced.

The implication: the stock market’s positive reaction suggests investors view the partnership’s end as a net gain for Krispy Kreme’s profitability.

What does the partnership end mean for McDonald’s donut menu?

Current donut offerings

• McDonald’s US menu discontinued all Krispy Kreme doughnuts on July 2, 2025 (KTLA).
• No replacement donut supplier has been announced as of late June 2025.

Future menu changes

• McDonald’s can bring back its own baked goods or source from another supplier, but no timeline exists.
• Industry analysts expect McDonald’s to return focus to its core breakfast items: Egg McMuffin, hotcakes, and hash browns.

Customer reactions

• Some customers expressed disappointment on social media, but many McDonald’s regulars didn’t see donuts as a menu staple.
• In regions where the partnership was strong, franchisees may face short-term revenue gaps.

The pattern: McDonald’s is retreating to its proven breakfast lineup rather than chasing another donut experiment.

What is the future of Krispy Kreme after the McDonald’s partnership ends?

Company strategy

• Krispy Kreme plans to invest in its retail shops, grocery channels, and direct-to-consumer sales (CNBC).
• The company will also pursue smaller-scale distribution deals rather than exclusive national fast-food agreements.

Stock performance

• Shares surged 17% after the turnaround announcement (Fortune).
• Analysts are cautiously optimistic, though the company still faces debt from earlier expansions.

Alternate distribution channels

• Krispy Kreme doughnuts remain available in grocery stores, convenience stores, and company-owned shops.
• No plans for another major fast-food chain partnership have been communicated.

The catch: Krispy Kreme must now prove it can grow revenue through retail and e-commerce without the high-volume fast-food channel.

“The early success could not be sustained.”

— Josh Charlesworth, CEO of Krispy Kreme, as quoted by Restaurant Dive

“The partnership met our standards for our restaurants and owner-operators, but the collaboration was not as profitable as expected.”

— McDonald’s spokesperson, as quoted by TODAY

“The arrangement was unsustainable to scale profitably.”

— Krispy Kreme statement, reported by Investopedia

The Krispy Kreme–McDonald’s donut experiment is a textbook example of how operational costs can undermine a brand partnership that sounds perfect on paper. For McDonald’s, the donut menu is gone and the focus returns to core breakfast. For Krispy Kreme, the $28.9 million lesson is clear: fast-food distribution margins are razor-thin when you’re delivering fresh doughnuts daily. The company’s stock jump after the breakup suggests investors believe the right move was to walk away. For McDonald’s, the choice is clear: return to its core breakfast menu, or risk further supply chain headaches from another ambitious rollout.