McDonald’s and Krispy Kreme announced Tuesday they are ending their ambitious doughnut partnership on July 2, 2025, marking the conclusion of what was planned to be a nationwide rollout by 2026. The unexpected termination comes after both companies cited profitability concerns and cost issues that made the collaboration unsustainable.
Partnership Termination Details
The companies revealed that McDonald’s and Krispy Kreme will end their doughnut partnership on July 2. The companies said the deal has not been as profitable as expected for the doughnut chain. This decision represents a significant shift from the original ambitious timeline that would have seen Krispy Kreme doughnuts available at all McDonald’s U.S. locations.
McDonald’s and Krispy Kreme said Tuesday that they’re ending their expanded partnership after just a few months, a bitter end to an ambitious plan to sell the doughnut chain’s treats in all of the fast-food giant’s U.S. locations by the end of next year. The partnership dissolution comes as a surprise to industry observers who viewed the collaboration as a natural fit between two iconic American brands.
Current Availability and Rollout Status
Currently, Krispy Kreme doughnuts are currently available in about 2,400 McDonald’s locations, mostly in the Midwest but now, no new locations will be added in 2025. This represents a significant portion of McDonald’s U.S. footprint, making the partnership termination particularly notable for customers who have grown accustomed to the convenience.
The partnership had already faced challenges earlier this year when six months after the chain took its trial partnership with McDonald’s nationwide, Krispy Kreme has paused its expansion. This pause in May 2025 served as an early warning sign of the difficulties both companies were experiencing.
Financial Pressures Behind the Split
McDonald’s Corp. and Krispy Kreme Inc. are ending their partnership after a little more than a year, with the doughnut chain citing cost issues. The financial strain appears to have been the primary driver behind the decision to terminate what was once viewed as a mutually beneficial arrangement.
Industry analysts suggest that the logistics of delivering fresh doughnuts daily to thousands of McDonald’s locations proved more complex and expensive than initially anticipated. The operational challenges of maintaining Krispy Kreme’s quality standards while scaling to McDonald’s massive distribution network created unsustainable cost pressures.
Partnership Timeline and History
The collaboration began modestly with testing phases before expanding nationally. In October 2022, the companies began testing Krispy Kreme doughnut sales at nine Louisville, Ky.-area McDonald’s restaurants. By March 2023, the partnership had expanded to 160 McDonald’s locations, showing initial promise for broader collaboration.
The partnership reached its peak when Krispy Kreme to provide fresh doughnuts daily at McDonald’s restaurants nationwide; Phased rollout will begin in 2H 2024 with nationwide availability expected by the end of 2026. This ambitious timeline ultimately proved unrealistic given the operational complexities involved.
Impact on Both Brands
It helped that Krispy Kreme has strong brand equity as well, creating yet another reason to visit McDonald’s — a two-for-one experience, if you will. But that experience is now over, as the companies today announced the partnership will end effective July 2 after a rollout to 2,400 restaurants.
The termination affects both companies’ strategic positioning in the competitive fast-food breakfast market. McDonald’s loses a potential differentiator in its morning offerings, while Krispy Kreme must find alternative distribution channels to maintain growth momentum.
What’s Next for Both Companies
With the July 2 termination date approaching, both companies are expected to focus on their core business strategies. McDonald’s will likely continue developing its McCafé offerings, while Krispy Kreme may explore other retail partnerships or focus on expanding its standalone locations and delivery services to maintain market presence.