Krispy Kreme CEO Josh Charlesworth said efforts to align costs with customer demand ultimately failed. "Ultimately, efforts to bring our costs in line with unit demand were unsuccessful, making the partnership unsustainable for us," he said in a joint statement.12

McDonald's USA Chief Marketing Officer Alyssa Buetikofer acknowledged the collaboration met the burger chain's expectations but emphasized profitability concerns. "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," she said.13

The partnership reached only about 2,400 McDonald's locations out of the chain's roughly 13,500 US restaurants, far short of the original goal to expand to more than 14,000 locations by late 2026.12 McDonald's characterized Krispy Kreme as a "small, non-material part" of its breakfast business.32

Krispy Kreme had already paused expansion to new McDonald's locations in May, according to Reuters, as the company reassessed deployment schedules.1 The donut chain's stock has plummeted roughly 70% this year.14

The companies initially announced their partnership in March 2024 after successful tests in Kentucky and Indiana, where demand exceeded expectations.1 Under the original agreement, Krispy Kreme committed not to supply donuts to other quick-service restaurants through 2026.2

The partnership was part of McDonald's broader effort to revamp its breakfast offerings after discontinuing items like blueberry muffins and apple fritters.1 For Krispy Kreme, the deal promised to more than double locations where customers could buy its products.1

Moving forward, Krispy Kreme said it will focus on "profitable US expansion through high-volume retail points of distribution and capital-light international franchise growth."34