It’s the end of a sweet chapter. McDonald’s and Krispy Kreme are officially calling it quits with their yearlong partnership wrapping up on July 2, 2025.
Krispy Kreme and McDonald’s end collaboration
McDonald’s and Krispy Kreme first launched their partnership in late 2022 as part of a test run to bring premium doughnuts to McDonald’s menus. Initially rolled out in select locations, the collaboration allowed customers to purchase popular Krispy Kreme items directly from McDonald’s restaurants. The move to partner with Krispy Kreme was part of McDonald’s broader strategy to diversify its dessert and beverage offerings, particularly at breakfast, where customers frequently sought more variety beyond iced coffees and Egg McMuffins. This effort aligned with the expansion of McCafé, McDonald’s dedicated coffeehouse brand, which has become a key player in the competitive coffee and baked goods market both in the U.S. and globally.
Based on early success, the two companies announced in March 2024 that they would expand nationally, aiming to bring Krispy Kreme doughnuts to all McDonald’s restaurants across the U.S. by the end of 2026.
Brands often team up in the food industry, where custom offerings and limited-time items can generate significant buzz. McDonald’s is a global leader in this space, partnering with international icons and local favorites to tailor menus around the world. Some of these launches have gone so well that they were rolled out internationally—like the Travis Scott “Cactus Jack” meal, which began in North America and later reached Europe, and the BTS Meal, launched in nearly 50 countries, complete with regionally inspired sauces and collectible packaging.
Krispy Kreme calls it quits, citing ‘unsustainable’ costs
Krispy Kreme has long embraced a smart growth strategy by partnering with supermarkets, restaurants and other retail outlets. In the doughnut business, timing and placement are everything, and offering sweet treats alongside savory food has proven to be a winning move.
This time around, Krispy Kreme felt it wasn’t meeting the benchmarks necessary to continue the partnership. McDonald’s, however, expressed satisfaction with the collaboration. Alyssa Buetikofer, McDonald’s U.S. chief marketing and customer experience officer, said in a statement: “We had strong collaboration with Krispy Kreme, and they delivered a great, high-quality product for us. While the partnership met our expectations for McDonald’s and our Owner/Operators, it also needed to be a profitable business model for Krispy Kreme.”
Investors file class-action lawsuit against Krispy Kreme
Krispy Kreme’s challenges extend beyond profitability following the end of its partnership with McDonald’s. The collaboration has sparked backlash from investors who feel they were sold a false promise. Krispy Kreme is now facing a class-action lawsuit from investors alleging they were misled about the company’s halted expansion into McDonald’s restaurants. The lawsuit claims Krispy Kreme failed to disclose the drop in demand after the initial marketing push, the partnership’s lack of profitability and the decision to pause further expansion.
This year, Krispy Kreme has seen a notable decrease in net revenue due to weaker consumer demand and reduced foot traffic in doughnut outlets, primarily in the U.S. Krispy Kreme CEO, Josh Charlesworth, acknowledged the McDonald’s partnership’s solid performance but emphasized the importance of long-term profitability.
Charlesworth admitted the company couldn’t cut costs enough to make the McDonald’s partnership work, calling it “unsustainable.” Krispy Kreme’s stock has dropped roughly 73% this year. In its first quarter, the company posted a loss of about $33 million, according to NBC News.
Collaborations like these are usually gold mines for brands eager to break into new markets and see how their products resonate in fresh settings. They provide a fast track to refining a brand’s message and enhancing its accessibility, enabling connection with audiences in meaningful ways.
Signs it’s time to end a business partnership and move on
Not every brand campaign is destined for long-term growth, and some are just designed to catch early buzz and kickstart an impressive quarter. As Krispy Kreme acknowledged, any successful strategy requires a long-term approach. Exiting its partnership with McDonald’s will allow the brand to explore new, potentially more cost-effective opportunities.
In the case of Krispy Kreme, rising costs and missed targets clearly indicated that the brand wasn’t receiving the consumer recognition it had anticipated—a year before predicting a nationwide rollout. In other instances, it might be a conflict of competition or risk of reputational damage. When two big name brands join forces, there is always the possibility of conflicting ideologies and mismatched strategies. Good ideas on paper aren’t always eternal.
With its “delivered fresh daily” model, Krispy Kreme will continue expanding in its trademark markets, offering fresh products to convenience stores, gas stations and grocery stores nationwide. The model remains highly profitable for the company, supported by strong partnerships with major retailers like Target and Walmart. Despite the eventual end of their burger pairing experiment, Krispy Kreme is doing what all successful brands do—refining, relocating and keeping relevant.
Photo by Adam McCullough/Shutterstock
