McDonald’s and Krispy Kreme have revealed plans to introduce Krispy Kreme doughnuts at McDonald’s locations across the United States by the end of 2026.
This strategic partnership, announced on Tuesday, will see a gradual rollout beginning in the latter half of this year. There is a projected timeline of two and a half years for Krispy Kreme to expand its distribution network to meet the demands of this collaboration.
During this period, McDonald’s will hold the exclusive fast-food partnership rights with Krispy Kreme in the U.S.
The collaboration with McDonald’s started about eighteen months ago with a test run at nine McDonald’s restaurants. The success of this trial led to an expansion to approximately 160 restaurants in Louisville and Lexington, Kentucky. These initial locations will continue offering Krispy Kreme doughnuts as part of the upcoming nationwide rollout.
McDonald’s will offer three of the most popular doughnuts from the Krispy Kreme line.
- Original Glazed
- Chocolate Iced with Sprinkles
- Chocolate Iced Kreme Filled
They will be offered individually or in a box of six.
Following the announcement, Krispy Kreme’s stock surged by 24% during morning trading on Tuesday, marking a record-breaking performance for the company. Krispy Kreme’s operational model, known as the “hub and spoke” system, enables efficient production and distribution of its beloved doughnuts.
Central production hubs, comprising stores or doughnut factories, dispatch freshly made treats daily to various retail outlets like grocery stores and gas stations.
This partnership signifies a significant growth opportunity for Krispy Kreme as it aims to extend its reach beyond its current 6,800 third-party stores. With McDonald’s vast network of approximately 13,500 restaurants in the U.S. and plans to open 900 new locations by 2027, Krispy Kreme sees an opportunity to leverage its existing infrastructure, particularly its surplus capacity in doughnut shops, to service around 6,000 McDonald’s restaurants.
CEO Josh Charlesworth highlighted that while McDonald’s is a key driver behind their rapid distribution expansion, Krispy Kreme also intends to tap into grocery and convenience store markets that prefer national suppliers. This move is expected to enhance overall efficiency and productivity within their distribution network over time.
Customers love Krispy Kreme and it has made it on many greatest donut lists.
For McDonald’s, incorporating Krispy Kreme doughnuts enriches its bakery and breakfast offerings. The addition of popular varieties like original glazed, chocolate iced with sprinkles, and chocolate iced cream-filled doughnuts will complement McDonald’s menu throughout the day.
Looking ahead, Krispy Kreme anticipates expanding its global presence to over 100,000 points of access for its doughnuts from the previous estimate of 75,000 locations. Despite concerns over market fluctuations due to factors like weight loss drugs impacting sales projections, both companies remain optimistic about the growth potential stemming from this partnership.
