McDonald's And Krispy Kreme To End Partnership In July, Doughnut Company CEO Says Efforts To Bring Costs Down With Unit Demand Were 'Unsuccessful'

In an official announcement on Tuesday, McDonald’s Corp. MCD and Krispy Kreme Inc. DNUT have decided to part ways. Concerns about profitability led to the termination of this association. Their US doughnut partnership will conclude on July 2, 2025.

What Happened: The two companies have mutually agreed to end their partnership after thoughtful consideration, which began with much enthusiasm, according to the statement.

McDonald’s USA’s Chief Marketing and Customer Experience Officer, Alyssa Buetikofer, expressed her satisfaction with the partnership, acknowledging Krispy Kreme’s delivery of a high-quality product. This decision comes amid a challenging period for McDonald’s.

Krispy Kreme’s CEO, Josh Charlesworth, also appreciated the close collaboration between the two companies. He further added that the partnership was deemed unsustainable due to the inability to align costs with unit demand. The executive emphasized Krispy Kreme’s focus on expanding its doughnut availability through U.S. retail points and international franchise growth.

“Ultimately, efforts to bring our costs in line with unit demand were unsuccessful, making the partnership unsustainable for us,” said Charlesworth.

Despite the end of the partnership, McDonald’s continues to prioritize its breakfast segment, which is a core pillar of its business strategy.

Why It Matters: The Golden Arches operator reported a 3.4% decline in revenue in the first quarter of 2025, attributed to the war in the Middle East and consumer uncertainty. This decline in revenue was part of a broader trend, with McDonald’s stock experiencing a period of weakness in the stock market.

On the other hand, though Krispy Kreme's stock saw a slight dip after the announcement, reflecting profitability and growth concerns by the investors, the multinational doughnut company aspires to expand its global presence. The recent sale of a stake in Insomnia Cookies and its profitable U.S. expansion through high-volume retail points of distribution is evidence to that.

Price Action: On Friday, McDonald’s stock closed nearly 0.7% higher at $291.47. Krispy Kreme shares closed 0.8% lower at $2.60, but gained 1.2% in after-hours trading to $2.63, according to data from Benzinga Pro.

Benzinga's Edge Stock Rankings indicate that McDonald’s Price Trend doesn’t check out over the Short, Medium and Long periods. Here is how Krispy Kreme compares.