Krispy Kreme's McDonald's Expansion Plans Put on Hold

Krispy Kreme has announced that it is putting its plans to expand its doughnuts to McDonald's menus across the US on hold. According to CEO Joshua Charlesworth, Krispy Kreme doughnuts are currently available at around 2,400 McDonald's locations in the US, but this number will not increase for the foreseeable future.

This means that only about 17% of US McDonald's locations will serve Krispy Kreme doughnuts. Charlesworth explained that demand has dropped below expectations and they are working to stimulate higher demand and simplify operations to deliver sustainable and profitable growth.

"We are seeing that after the initial marketing launch, demand drops below our expectations, requiring intervention," he said. "To deliver sustainable, profitable growth, we are partnering with McDonald's to increase sales by stimulating higher demand and cutting costs by simplifying operations."

McDonald's began serving Krispy Kreme doughnuts in the second half of 2024, with plans for full nationwide availability by the end of 2026. The three varieties available at participating locations are Original Glazed, Chocolate Iced with Sprinkles, and Chocolate Iced Kreme Filled.

Charlesworth expressed confidence that the partnership could resume expansion in the future, stating, "I remain confident in the long-term national opportunity, but we need to work together with them to identify levers to improve sales, simplify operations, and once we're positioned for profitable growth, we'll expand further."

Although the McDonald's expansion is on hold, Krispy Kreme plans to continue placing its doughnuts in more Costco and Sam's Club locations in the coming months.