McDonald’s has announced plans to offer Krispy Kreme doughnuts at its restaurants nationwide by the end of 2026, marking a significant partnership between the two chains.
The rollout is set to begin in the latter half of this year, with Krispy Kreme ramping up its distribution to meet the demand. Under the agreement, McDonald’s will be the exclusive fast-food partner for Krispy Kreme in the U.S.
Shares of Krispy Kreme surged 39% following the announcement, signaling investor excitement about the collaboration.
Krispy Kreme utilizes a “hub and spoke” model for efficient production and distribution of its treats. With production hubs sending out freshly made doughnuts to retail locations daily, the partnership with McDonald’s presents a prime opportunity for Krispy Kreme to expand its reach. McDonald’s operates approximately 13,500 restaurants in the U.S., with plans to add 900 new locations by 2027.
Krispy Kreme CEO Josh Charlesworth explained that the company’s existing infrastructure, primarily its doughnut shops with excess capacity, can service about 6,000 McDonald’s restaurants. Additionally, Krispy Kreme has been enhancing its capacity to reach the remaining 7,500 McDonald’s locations and expand into grocery and convenience stores.
The collaboration not only accelerates Krispy Kreme’s distribution but also enhances the efficiency and productivity of its network. Charlesworth noted that increased demand from McDonald’s and other new customers allows Krispy Kreme’s production lines to operate at higher volumes with minimal additional costs.
The relationship between the two chains began with a test about a year and a half ago, initially involving nine McDonald’s restaurants. Positive reception from customers led to an expansion to approximately 160 restaurants across Kentucky. McDonald’s plans to continue selling Krispy Kreme doughnuts at these locations during the nationwide rollout.
For McDonald’s, the addition of Krispy Kreme doughnuts complements its bakery and breakfast offerings, aligning with its focus on coffee. Customers will have the option to choose from a variety of doughnut flavors, available individually or in packs of six, throughout the day.
Looking ahead, Krispy Kreme anticipates expanding its global reach to over 100,000 points of access for its doughnuts, surpassing its previous estimate of 75,000 locations.
While concerns about potential competition from weight loss drugs have impacted Krispy Kreme’s stock performance, McDonald’s has maintained stability, benefiting from consumer demand for affordable food and beverages.