McDonald's and Krispy Kreme revealed on Tuesday that they're ending their US partnership on July 2.
The move comes less than a year after Krispy Kreme doughnuts were introduced at select McDonald's locations.
The partnership started in March 2024, aiming to offer Krispy Kreme doughnuts at every McDonald's in the US by 2026.
After a small test run in Kentucky showed promise, McDonald's started offering three types of doughnuts—sold individually or by the box—in about 2,400 restaurants.
According to AP News, that rollout only reached a small number of McDonald's nearly 14,000 locations across the country.
Despite early excitement, the results didn't pan out as expected. "Ultimately, efforts to bring our costs in line with unit demand were unsuccessful, making the partnership unsustainable for us," said Krispy Kreme CEO Josh Charlesworth in a joint statement.
While McDonald's said it was pleased with the quality of the doughnuts and how the pilot performed in stores, the partnership didn't work financially for Krispy Kreme.
McDonald's and Krispy Kreme both announced the end of their partnership on Tuesday, after working together since 2023. https://t.co/297aErNUeJ
— Austin Statesman (@statesman) June 24, 2025
Krispy Kreme Exits McDonald's Amid Mounting Business Losses
Alyssa Buetikofer, McDonald's US chief marketing and customer experience officer, explained, "This needed to be a profitable business model for Krispy Kreme as well."
Krispy Kreme's decision comes at a time when both brands are facing business challenges.
Krispy Kreme has been posting financial losses, while McDonald's has been trying to win back budget-conscious customers hurt by inflation, NBC News said.
McDonald's stock has seen a slight decline this year, while Krispy Kreme's shares have fallen by more than 70%.
The end of the deal won't leave a major gap in McDonald's menu. The company confirmed that Krispy Kreme doughnuts only made up a small part of its breakfast offerings.
Although the partnership with McDonald's is ending, Krispy Kreme isn't going anywhere. The company says it will continue focusing on other sales channels like grocery stores and large retailers.
For now, fans who loved getting their doughnuts with a side of fries will have to look elsewhere starting July 2.
As Charlesworth said, "We'll keep delivering fresh doughnuts—but in ways that make better business sense."
Originally published on vcpost.com
