It is such a wonderful grief to part.
A painful end to an ambitious plan to offer the doughnut chain’s delights in all of the fast-food giant’s U.S. outlets by the end of next year, McDonald’s and Krispy Kreme announced on Tuesday that they are terminating their expanded partnership after only a few months.
The companies launched the strategy a little over six months ago after announcing it in March 2024, but the luster quickly faded. Citing a desire to increase sales, Krispy Kreme put everything on hold last month. On July 2, McDonald’s will cease to sell doughnuts.
It didn’t take long for McDonald’s and Krispy Kreme to realize their collaboration wasn’t working. In a joint statement released Tuesday, the companies confirmed the end of their partnership, citing unsustainable economics.
“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. The decision reflects deeper issues both companies have been grappling with.
McDonald’s, despite launching various value-focused deals, has faced difficulty winning back its core customer base. With inflation squeezing low- and middle-income households, even fast food is beginning to feel like a luxury to some consumers. Krispy Kreme, meanwhile, has struggled to regain financial footing. The brand—while still beloved by many—has recorded millions in losses in recent quarters.
The market has not been forgiving. McDonald’s stock is slightly down for the year, while Krispy Kreme has seen a steep decline, with its shares tumbling over 73%.
McDonald’s claimed to be pleased with the collaboration but dismissed its demise.
As of March 30, only roughly 2,400 of McDonald’s 13,500 stores in the United States served Krispy Kreme candies, making up a “small” part of the company’s large breakfast revenue, according to Mickey D’s. Therefore, there won’t be much of a hole left by the doughnut disappearing.
