The McDonald’s Krispy Kreme partnership, once hailed as a sweet deal for doughnut lovers, has come to an unexpected end. Just six months after announcing a nationwide rollout, the two iconic brands confirmed on June 24, 2025, that their collaboration will cease on July 2, 2025. This news shocked fans who had eagerly anticipated fresh Krispy Kreme doughnuts at McDonald’s locations across the U.S. The partnership’s rapid unraveling raises questions about what went wrong and what’s next for both companies. Let’s dive into the latest developments surrounding this high-profile split.
A Promising Start for McDonald’s Krispy Kreme
The McDonald’s Krispy Kreme partnership kicked off with a small test in October 2022 at nine McDonald’s restaurants in Louisville, Kentucky. The trial offered three popular Krispy Kreme doughnuts: Original Glazed, Chocolate Iced with Sprinkles, and Chocolate Iced Kreme Filled. Customer enthusiasm exceeded expectations, prompting an expansion to 160 locations in Kentucky by March 2023. The success of these tests fueled ambitious plans for a nationwide rollout, with a goal to bring Krispy Kreme doughnuts to all 13,500 U.S. McDonald’s restaurants by the end of 2026.
In March 2024, the companies announced their bold expansion, projecting that Krispy Kreme would more than double its distribution points. The doughnuts were to be delivered fresh daily, available individually or in packs of six, from breakfast through the day. Krispy Kreme’s CEO, Josh Charlesworth, emphasized the partnership’s potential to boost accessibility and profitability. McDonald’s saw it as a chance to strengthen its breakfast menu, competing with coffee and bakery rivals. Social media buzzed with excitement, with Instagram posts showcasing doughnuts paired with McCafé coffee.
Key Point Summary:
- Started with a 2022 test in Kentucky, expanded to 160 locations by 2023.
- Nationwide rollout announced in March 2024, targeting all U.S. McDonald’s by 2026.
- Offered three Krispy Kreme doughnut varieties, delivered fresh daily.
Cracks in the McDonald’s Krispy Kreme Plan
Despite the initial hype, the McDonald’s Krispy Kreme partnership hit roadblocks. By May 8, 2025, Krispy Kreme announced a pause in the rollout, citing lower-than-expected sales. The doughnuts were available in 2,400 McDonald’s locations, but demand dropped after the initial marketing push faded. Charlesworth noted during an earnings call that consumer awareness waned, and the partnership wasn’t profitable. Krispy Kreme withdrew its full-year financial outlook, blaming macroeconomic challenges and uncertainty around the McDonald’s deployment schedule.
The pause sparked immediate backlash. Krispy Kreme’s stock plummeted 25% on May 8, 2025, and continued to slide, falling 68% for the year. Investors filed a class-action lawsuit in North Carolina, alleging that Krispy Kreme made misleading statements about the partnership’s success between February and May 2025. The lawsuit claims the company failed to disclose declining demand and profitability issues, leaving shareholders blindsided.
On YouTube, food reviewers expressed mixed feelings. Some praised the doughnuts’ quality but noted inconsistent availability at McDonald’s. Others felt the partnership didn’t align with McDonald’s core fast-food identity, diluting its focus. Meanwhile, Instagram posts from fans lamenting the pause showed a loyal customer base, but not enough to sustain the venture’s economics.
The Final Breakup Decision
On June 24, 2025, McDonald’s and Krispy Kreme jointly announced the partnership’s end, effective July 2, 2025. Charlesworth stated that efforts to align costs with demand failed, rendering the collaboration “unsustainable” for Krispy Kreme. McDonald’s Chief Marketing Officer, Alyssa Buetikofer, acknowledged the partnership met their expectations but emphasized it needed to be profitable for Krispy Kreme too. The doughnuts represented a small part of McDonald’s breakfast business, minimizing the impact on the fast-food giant.
The termination reflects broader challenges. McDonald’s reported a 3.6% drop in U.S. same-store sales for Q1 2025, its worst since the COVID-19 pandemic. Economic uncertainty and inflation have strained consumer spending, affecting both brands. Krispy Kreme, already grappling with a 15% revenue decline in Q1 2025, faces added pressure from the lawsuit and a strategic shift toward cost-cutting, including selling its stake in Insomnia Cookies for $75 million.
What’s Next for Both Brands?
With the McDonald’s Krispy Kreme partnership over, both companies are pivoting. Krispy Kreme plans to focus on high-volume retail distribution, like grocery and convenience stores, and international franchise growth. The company aims to leverage its 17,500 global access points to drive sustainable growth. McDonald’s, meanwhile, is doubling down on its breakfast menu, recently introducing McCrispy Strips and teasing the return of Snack Wraps in 2025.
Social media reactions on platforms like Instagram show fans disappointed but hopeful. Some suggest Krispy Kreme partner with smaller chains or coffee shops, while others urge McDonald’s to revive its own bakery items. The end of this partnership marks a cautionary tale about ambitious collaborations in a tough economic climate.
Key Point Summary:
- Partnership paused in May 2025 due to low sales and profitability issues.
- Ended on July 2, 2025, after failing to align costs with demand.
- Krispy Kreme faces a lawsuit; both brands shift focus to new strategies.
Conclusion
The McDonald’s Krispy Kreme partnership promised a sweet fusion of fast food and iconic doughnuts but crumbled under economic and operational pressures. From a hopeful start in Kentucky to a nationwide dream dashed in six months, the collaboration’s end highlights the challenges of scaling ambitious ventures. As both brands move forward, fans can only hope for new ways to enjoy their favorites. Stay tuned for updates on McDonald’s breakfast innovations and Krispy Kreme’s next moves.
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