The end of one of the most talked-about partnerships in the fast-food industry now has an official date. McDonald’s and Krispy Kreme have officially announced that their collaboration will come to an end on July 2, 2025, marking the final day that the famous glazed doughnuts will be available at the burger giant’s restaurants. The news closes a chapter that, despite high expectations, failed to meet the economic goals of both companies.
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Why is the McDonald’s and Krispy Kreme partnership ending?
Although at the time it was seen as a strategic move to boost sales for both giants, the reality behind the McDonald’s and Krispy Kreme partnership turned out to be less sweet than expected. After “careful consideration,” both companies have decided to end their partnership, according to a joint statement.
Alyssa Buetikofer, McDonald’s USA Chief Marketing and Customer Experience Officer, explained that while the collaboration met internal expectations, the results were not sustainable for the doughnut brand. “We had strong collaboration with Krispy Kreme, and they delivered a great, high-quality product. However, this business model also needed to be profitable for Krispy Kreme,” Buetikofer stated.
Meanwhile, Krispy Kreme CEO Josh Charlesworth detailed that despite joint efforts in execution, marketing, and training, “efforts to bring our costs in line with unit demand were unsuccessful, making the partnership unsustainable for us.”
When will Krispy Kreme be available at McDonald’s for the last time?
Fans of glazed doughnuts should mark July 2, 2025 on their calendars. Starting on that date, Krispy Kreme products will no longer be available at the approximately 2,400 McDonald’s locations that currently offer them, mainly in the United States.
This decision brings an end to a pilot program that began in 2024, which promised to bring the iconic doughnuts to over half of McDonald’s locations nationwide by the end of 2025, with the ambitious goal of achieving nationwide coverage in 2026.
However, the economic reality for both Krispy Kreme and McDonald’s forced a change of course.
How did the partnership impact Krispy Kreme’s finances?
Krispy Kreme was already facing several financial challenges even before this decision. In its latest quarterly report, the company reported a 20.1% drop in net income, bringing it down to $59.4 million. The factors behind this decline include:
- The divestment of its subsidiary Insomnia Cookies.
- Steady increases in operating costs.
- Rising wages for its workforce.
These problems, combined with the lack of profitability from the McDonald’s partnership, caused concern in the markets. Krispy Kreme’s shares dropped by up to 10% after the announcements, and the company decided to withdraw its annual financial projections, citing “macroeconomic uncertainty.”
Looking ahead to the second quarter of 2025, the company expects net revenues between $370 million and $385 million, a figure that reflects much more modest growth than originally anticipated.
How do these changes affect McDonald’s?
For McDonald’s, Krispy Kreme’s departure does not represent as severe a blow as one might think. According to statements from the company, the doughnuts were a small, non-essential part of its U.S. breakfast menu.
“Krispy Kreme represented a small, non-material part of McDonald’s breakfast business. Breakfast is a core pillar of McDonald’s business strategy, and the company remains focused on delivering delicious, affordable, and convenient options to help fans start their day,” the joint statement from both brands reads.
However, it is undeniable that the chain’s declining sales during the first quarter of 2025 — a 3.6% drop in the United States and a 1% drop globally — have put pressure on the company to diversify its offerings and win back customers.
