McDonald’s and Krispy Kreme jointly announced on June 24 that their partnership, offering popular Krispy Kreme doughnuts in participating McDonald’s breakfast menus, will be discontinued effective July 2, 2025. The limited-time collaboration, launched in 2024, rolled out across approximately 2,400 U.S. locations but fell short of profitability goals for Krispy Kreme.
Economics Over Enthusiasm
Krispy Kreme CEO Josh Charlesworth acknowledged that, despite strong execution, marketing, and training, the effort “was unsuccessful in bringing our costs in line with unit demand,” making the partnership financially untenable.
McDonald’s USA CMO Alyssa Buetikofer emphasized that while the deal met their standards, it needed to be profitable for both:
“…the partnership met expectations for McDonald’s and Owner/Operators, this needed to be a profitable business model for Krispy Kreme as well.”
Slower Rollout, Economic Drag
Though initial tests starting in Kentucky at 160 restaurants sparked strong consumer interest, expansion slowed. By early 2025, the brand had paused additions and eventually retracted plans for further rollout in Q2 amid “macroeconomic softness” and an underperforming U.S. breakfast market, including a 3.6% same-store sales decline at McDonald’s.
Strategic Refocus
With the partnership winding down, the brands are shifting strategies:
McDonald’s plans to double down on core breakfast offerings, reintroducing hits like the Snack Wrap and McCrispy Chicken Strips, alongside new items like the Chocolate Chip Frappé with Hershey.
Krispy Kreme is pivoting towards “capital-light international franchises” and high-volume grocery/retail distribution, no longer confined to fast-food partnerships.
The company also withdrew its full-year outlook and suspended dividends after posting a $33.3 million Q1 net loss, citing macroeconomic headwinds.
What It Means for Consumers
Last chance alert: Grab doughnuts at McDonald’s before July 2.
Menu update: Expect a refreshed breakfast lineup in July.
Krispy Kreme’s future: More doughnut access via traditional retail and franchises, fewer fast-food tie‑ups.
Despite nostalgic appeal and early buzz, the McDoughnuts venture folded under economic pressure. Both brands are now pursuing strategies that promise more sustainable growth, and consumer cravings will have to adjust accordingly.
