The sweet collaboration between fast-food giant McDonald’s and doughnut purveyor Krispy Kreme is coming to an end. Both companies announced on Tuesday, June 24, 2025, that their partnership, which aimed to bring Krispy Kreme doughnuts to McDonald’s locations nationwide, will officially cease on July 2, 2025. The decision stems primarily from Krispy Kreme’s inability to achieve a cost-effective and sustainable business model for the venture.
The partnership was initially unveiled in March 2024, with ambitious plans to make Krispy Kreme doughnuts available at all McDonald’s restaurants across the U.S. by the end of 2026. The offerings included popular varieties such as the Original Glazed Doughnut, Chocolate Iced with Sprinkles Doughnut, and Chocolate Iced Kreme Filled Doughnut. These treats were intended to complement McDonald’s breakfast menu, pairing well with McCafé® coffees.
Before the broader rollout, the companies conducted a phased test program. This began in late 2023, with Krispy Kreme doughnuts being sold in approximately 160 McDonald’s restaurants in the Lexington and Louisville areas of Kentucky. According to a joint news release, this initial test was deemed “successful,” with “consumer excitement and demand exceed[ing] expectations.” Following this, in October 2024, McDonald’s locations in the Chicago area also began selling the doughnuts. Krispy Kreme even offered a promotion during that time, providing a free doughnut to customers who presented a McDonald’s receipt.
However, despite the promising start, the nationwide expansion hit a snag. Krispy Kreme paused the planned rollout in early May 2025, indicating a need to “reassess the deployment schedule together with McDonald’s while it works to achieve a profitable business model for all parties.” Krispy Kreme CEO Josh Charlesworth elaborated on an earnings call that demand dropped below expectations after the initial launch, necessitating intervention. In a statement regarding the termination, Charlesworth said, “Ultimately, efforts to bring our costs in line with unit demand were unsuccessful, making the partnership unsustainable for us.” (Fox Business)
From McDonald’s perspective, the partnership met their expectations. Alyssa Buetikofer, McDonald’s USA’s chief marketing and customer experience officer, stated, “We had strong collaboration with Krispy Kreme and they delivered a great, high-quality product for us, and while the partnership met our expectations for McDonald’s and Owner/Operators, this needed to be a profitable business model for Krispy Kreme as well.” McDonald’s also noted that Krispy Kreme doughnuts represented only a “small, non-material part” of its breakfast business, which remains a “core pillar” of its overall strategy. (USA Today)
Moving forward, Krispy Kreme plans to redirect its focus towards driving future sustainable growth. This includes expanding the availability of its products through profitable U.S. expansion via high-volume retail points of distribution and capital-light international franchise growth. McDonald’s will continue to concentrate on its core breakfast offerings and overall business strategy.
The dissolution of this highly anticipated partnership serves as a reminder of the complexities involved in large-scale collaborations within the fast-food industry, where profitability and operational sustainability are paramount for all parties involved.
