What started as a highly anticipated collaboration between two fast-food giants has seemingly lost its sugary appeal. McDonald’s and Krispy Kreme are officially parting ways, ending a nationwide rollout plan that promised easy access to beloved glazed treats. Despite initial excitement and a successful pilot program, it appears that customer demand for Krispy Kreme donuts at the Golden Arches wasn’t sweet enough to sustain the partnership, leading both companies to acknowledge that the venture was not proving profitable.
The End of a Sweet Experiment: McDonald’s and Krispy Kreme Part Ways
Soon, the familiar ring of a McDonald’s order won’t include the option of a classic Original Glazed Doughnut. In a move that might disappoint those with a sweet tooth, McDonald’s and Krispy Kreme officially announced the termination of their partnership on Tuesday, June 24.
Earlier this year, the two food titans embarked on an ambitious nationwide rollout plan, bringing three popular Krispy Kreme varieties—Original Glazed, Chocolate Iced with Sprinkles, and Chocolate Iced Kreme Filled doughnuts—to approximately 2,400 McDonald’s locations. Despite the initial buzz, the venture ultimately failed to gain enough traction with customers. Both companies confirmed the offerings would soon be discontinued due to unsatisfactory sales performance.
“Our two companies partnered very closely, each supporting execution, marketing, and training, delivering a great consumer experience,” stated Krispy Kreme CEO Josh Charlesworth in a joint news release. He elaborated on the core issue, explaining, “Ultimately, efforts to bring our costs in line with unit demand were unsuccessful, making the partnership unsustainable for us.”
With the collaboration now dissolved, Krispy Kreme plans to refocus its efforts on expanding the broader availability of its doughnuts, while McDonald’s will zero in on strengthening its core breakfast business.
How It Began: Tracing the McDonald’s-Krispy Kreme Partnership
The Krispy Kreme–McDonald’s partnership began quietly in October 2022. At the time, the chains announced that nine McDonald’s locations in Louisville, Kentucky, started selling Krispy Kreme doughnuts as part of a test. A year later, the test program expanded to 160 McDonald’s locations in Lexington and Louisville, Kentucky. The pilot program was deemed a success, with both companies noting that customer enthusiasm and demand exceeded expectations.
By October 2024, the collaboration expanded to the Chicago area, where select McDonald’s restaurants began offering Original Glazed and other fresh Krispy Kreme doughnuts. That same month, Krispy Kreme sweetened the deal by giving away free doughnuts to customers who presented a McDonald’s receipt dated October 10–14.
In March 2024, the companies officially announced plans for a nationwide expansion, targeting full availability at participating McDonald’s locations by the end of 2026.
“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,” Charlesworth said in a March 2024 news release.
During the entire partnership, McDonald’s didn’t bake the doughnuts in-house. Instead, the sweet treats were freshly prepared at one of Krispy Kreme’s large production facilities and then delivered daily to participating McDonald’s restaurants. This supply model allowed Krispy Kreme to maintain its signature quality while streamlining operations for the fast-food chain. However, it’s not clear how revenues were split between McDonald’s and Krispy Kreme.
Is McDonald’s Hitting Pause on Future Third-Party Collaborations?
While McDonald’s hasn’t announced any new third-party collaborations as of now, the outcome of its Krispy Kreme partnership suggests the company will proceed with caution in the future. The failed rollout highlighted challenges around logistics, cost-efficiency, and sustained customer demand—all critical factors when McDonald’s considers integrating outside brands into its tightly controlled operations.
Source: USA Today