Krispy Kreme pauses its doughnut rollout with McDonald’s
- Krispy Kreme paused the rollout of its doughnut partnership with McDonald's at 2,400 US locations as announced in its May 2025 earnings release.
- The partnership began testing in Kentucky in 2022 and expanded due to McDonald's reporting consumer excitement and demand that exceeded expectations.
- Both chains face economic challenges, with McDonald's posting its worst quarter since Covid-19 and Krispy Kreme's stock dropping about 73% over the past year amid reduced consumer spending.
- Krispy Kreme CEO Josh Charlesworth emphasized the company’s commitment to reducing its financial obligations and strengthening its financial position to support long-term, profitable growth. To help achieve this, the company will halt dividend payments, which will save approximately $6 million each quarter.
- Krispy Kreme indicated that pausing expansion will allow time to establish a profitable business model for everyone involved, with no new McDonald’s locations planned for addition in the second quarter of 2025 as they reevaluate their growth strategy.
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