When two household names team up, it’s natural to expect a long run. But the Krispy Kreme-McDonald’s doughnut partnership lasted just over a year before both companies called it quits in July 2025. The deal unraveled because the costs of delivering fresh doughnuts every morning outweighed the sales.

4 related posts

Partnership announced: March 2024 ·
McDonald’s locations reached: 2,400 ·
Partnership end date: July 2, 2025 ·
Reason cited by Krispy Kreme: Unsustainable operating costs ·
Krispy Kreme stock fall (May 8, 2025): 24% ·
McDonald’s statement: Not as profitable as expected

Quick snapshot

1Confirmed facts
2What’s unclear
  • Exact financial details of the contract remain private
  • Long-term impact on Krispy Kreme’s stock price is unknown
  • Potential for a future partnership between the two companies is not ruled out
3Timeline signal
  • March 2024: Partnership announced (CNBC)
  • May 2025: Rollout paused, sales slowed (CNBC)
  • June 24, 2025: End announced (CNBC)
4What’s next

Six key facts at a glance, one pattern: the partnership grew fast but the unit economics never clicked.

A data table below captures the core timeline and financial context of the deal.

Label Value
Partnership Start Date March 2024
Partnership End Date July 2, 2025
Number of McDonald’s Locations 2,400
Primary Reason for End Unsustainable operating costs
Krispy Kreme Ownership Publicly traded (NASDAQ: DNUT)
Krispy Kreme Headquarters Charlotte, North Carolina, USA

What happened to Krispy Kreme and McDonald’s partnership?

Why did the partnership end?

  • Krispy Kreme CEO Josh Charlesworth said efforts to bring costs in line with unit demand were unsuccessful (CNBC (business news)).
  • McDonald’s stated the collaboration was beneficial but needed to be a profitable model for Krispy Kreme as well (CNBC).
  • Both companies concluded their approach was flawed after the rollout underperformed (NBC News (national news)).

Krispy Kreme’s CEO described the partnership as unsustainable for the doughnut company, noting that the costs of daily fresh deliveries to McDonald’s locations were not covered by the revenue generated (Fox Business (financial news)).

The trade-off

Krispy Kreme’s fresh-doughnut model excels in its own shops but faced a margin squeeze when scaled to 2,400 fast-food kitchens. The logistics of daily delivery proved too expensive for the per-unit revenue.

When did the partnership officially end?

  • The partnership was set to stop selling Krispy Kreme doughnuts at McDonald’s restaurants effective July 2, 2025 (CNBC).
  • The announcement was made on June 24, 2025, after the companies had already paused the rollout in May 2025 (CNBC).

The implication: a partnership that began with national ambitions ended in just over a year, with both sides acknowledging the financial mathematics didn’t add up.

How many McDonald’s locations were involved in the Krispy Kreme partnership?

How did the partnership scale up?

  • The initial rollout expanded Krispy Kreme doughnuts to about 2,400 McDonald’s restaurants in the U.S. (CNBC).
  • The original plan, announced in March 2024, aimed for a nationwide rollout by the end of 2026 (CNBC).
  • McDonald’s corporate press materials described the 2024 rollout as a phased national partnership beginning in the second half of 2024 (McDonald’s Corporate (official press release)).

What was the original goal for store count?

  • The agreement initially intended to place Krispy Kreme products in all U.S. McDonald’s outlets by the end of 2026 (NBC News).
  • Expansion was halted due to costs after the partnership reached 2,400 locations (CNBC).

The pattern: the deal scaled fast but the per-store economics never reached the break-even point. Stopping at 2,400 rather than pushing to 14,000 reveals the fundamental cost problem.

Who currently owns Krispy Kreme?

What country owns Krispy Kreme?

  • Krispy Kreme is a publicly traded company on the NASDAQ under the ticker DNUT (CNBC).
  • Headquartered in Charlotte, North Carolina, USA.
  • Operates in multiple countries including the USA, Canada, UK, and Mexico.

Krispy Kreme is not owned by a single country or parent company; it is publicly traded, with shares held by institutional and retail investors. The company’s structure remains unchanged after the McDonald’s deal ended.

Is Krispy Kreme going out of business?

What happens to unsold Krispy Kreme doughnuts?

  • Krispy Kreme is not going out of business. The company continues to operate its own retail stores and other partnerships.
  • Unsold donuts are donated to local charities through the Krispy Kreme Donut Dudes program.

How does the end of the McDonald’s deal affect Krispy Kreme’s future?

  • Krispy Kreme withdrew its full-year outlook in May 2025, citing economic softness (CNBC).
  • Stock fell 24% on May 8, 2025 after the company said it was reassessing the McDonald’s rollout and pulled guidance (CNBC).
  • Under the March 2024 agreement, Krispy Kreme would not provide doughnuts to any other U.S. fast-food chain until December 31, 2026 (Reuters (news agency)).

Krispy Kreme’s core business remains intact, but the loss of the McDonald’s channel and the exclusivity clause that blocks other fast-food deals until 2026 puts pressure on the company to find growth elsewhere.

What is the 2 minute rule at McDonald’s?

How does the 2 minute rule relate to the Krispy Kreme partnership?

  • McDonald’s 2-minute rule is a service standard for drive-thru wait times.
  • This internal standard may have conflicted with the logistics of fresh Krispy Kreme donut delivery.

McDonald’s operates its drive-thru on a tight timeline — orders are expected to be ready within two minutes. Adding a fresh-doughnut delivery process that required separate handling and stocking may have added friction to that workflow, especially when sales volumes were lower than expected.

Why this matters

For McDonald’s, operational speed is a non-negotiable brand promise. Any partnership that slows down the drive-thru — even by a few seconds — can undermine the entire business model.

Timeline of the Krispy Kreme McDonald’s partnership

  • March 2024: Krispy Kreme and McDonald’s announce national partnership (CNBC).
  • Late 2024: Partnership expands to 2,400 McDonald’s locations across the USA (CNBC).
  • May 2025: Rollout paused; Krispy Kreme withdraws guidance; stock falls 24% (CNBC).
  • June 24, 2025: Companies announce partnership will end on July 2, 2025 (CNBC).
  • July 2, 2025: Partnership officially ends (CNBC).
  • August 7, 2025: Fortune reports on partnership end, citing unsustainable operating costs (Food Business News (industry publication)).

The timeline shows a rapid rise and fall — just over a year from announcement to termination, with the pause in May 2025 being the first clear signal that the math wasn’t working.

What’s confirmed and what’s unclear

Confirmed facts

  • Partnership ended on July 2, 2025.
  • Decision was mutual between Krispy Kreme and McDonald’s.
  • Krispy Kreme cited unsustainable costs.
  • McDonald’s cited lower than expected profitability.
  • Krispy Kreme is not going out of business.

What’s unclear

  • Exact financial details of the contract.
  • Long-term impact on Krispy Kreme’s stock price.
  • Potential for a future partnership between the two companies.

What the companies said

“Efforts to bring costs in line with unit demand were unsuccessful.”

— Josh Charlesworth, CEO of Krispy Kreme (CNBC)

“The collaboration had been beneficial for McDonald’s and its franchise owners, but needed to be a profitable model for Krispy Kreme as well.”

— McDonald’s official statement (CNBC)

Both sides acknowledged the operational gap. Krispy Kreme’s CEO was direct about the cost challenge; McDonald’s framed it as a mutual need for profitability. The language suggests a clean break rather than a bitter dispute.

Related reading: Chick-fil-A Near Me: Locations, Menu, Hours · Companies in the Consumer Services Field

Additional sources

finance.yahoo.com, cnbc.com, linkedin.com, reddit.com, cnbc.com

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Frequently asked questions

What was the Krispy Kreme McDonald’s partnership?

It was a distribution deal that placed Krispy Kreme doughnuts in McDonald’s restaurants across the U.S., starting in 2024. The partnership ended in July 2025 after just over a year.

Why did Krispy Kreme and McDonald’s call off their partnership?

Krispy Kreme said the operating costs of delivering fresh doughnuts daily were unsustainable, while McDonald’s said the deal was not as profitable as expected. Both companies mutually agreed to end it.

Will Krispy Kreme donuts still be available anywhere?

Yes, Krispy Kreme continues to sell its doughnuts through its own retail stores, grocery channels, and other partnerships. The McDonald’s channel was one of many.

How did the partnership affect McDonald’s breakfast menu?

McDonald’s breakfast menu remains unchanged after the partnership ended. The doughnut offering was a limited addition that did not become a permanent menu item.

Is Krispy Kreme stock a good buy after the partnership ended?

That depends on individual investment goals. The stock fell 24% in May 2025 when the company paused the rollout and withdrew guidance. Analysts are divided on the company’s future growth prospects.

What other fast food chains does Krispy Kreme partner with?

Krispy Kreme has partnerships with various convenience stores and grocery chains. Under the McDonald’s agreement, it was barred from supplying any other U.S. fast-food chain until December 31, 2026.

For Krispy Kreme, the lesson is clear: scaling a fresh-doughnut distribution network into a giant fast-food chain requires operational costs that can quickly erode profits. Without a viable per-unit model, even the most promising partnerships can fall apart. Investors will be watching closely to see how the company navigates the exclusivity clause and finds new growth channels.