McDonald’s and Krispy Kreme Conclude Short-Lived Doughnut Partnership

McDonald’s and Krispy Kreme announced Tuesday that they will end their doughnut-selling partnership on July 2, bringing a premature close to what had once been an ambitious plan to expand Krispy Kreme’s presence to thousands of McDonald’s restaurants across the US.

The partnership, launched in March 2024, aimed to introduce Krispy Kreme’s doughnuts in all 13,500 US McDonald’s locations by the end of 2026. However, the collaboration stalled earlier this year when Krispy Kreme paused the rollout, citing weaker-than-expected sales and the need to re-evaluate the venture’s sustainability.

As of March, Krispy Kreme products were available in about 2,400 McDonald’s restaurants — a fraction of the fast-food giant’s total U.S. footprint.

“Ultimately, efforts to bring our costs in line with unit demand were unsuccessful, making the partnership unsustainable for us,” said Krispy Kreme CEO Josh Charlesworth in a joint statement.

McDonald’s said the partnership had met expectations on its end but acknowledged that it also needed to work financially for Krispy Kreme.

The conclusion of the agreement reflects broader economic challenges for both companies. McDonald’s has struggled to maintain customer traffic amid ongoing inflation and has leaned heavily on value deals to entice budget-conscious diners. Its first-quarter results showed the steepest decline in same-store sales since 2020.

Krispy Kreme, meanwhile, has faced steep losses and a significant drop in its share price — down more than 70% in 2025. The company reported a $33 million loss in the first quarter and withdrew its full-year outlook in May, citing market softness and a need to refocus its growth strategy.

Going forward, Krispy Kreme says it will concentrate on expanding through high-volume retail locations and international franchising. McDonald’s, for its part, downplayed the impact of the decision, noting that doughnut sales were a “small, non-material” portion of its breakfast business.

The end of the partnership also comes just ahead of key summer promotions for McDonald’s, as the company seeks to reinvigorate consumer interest amid tightening household budgets.

With input from CNBC, NBC News, and Axios.