McDonald’s is set to bring the beloved Krispy Kreme doughnuts to its restaurants nationwide by the end of 2026. This exciting partnership between the fast-food giant and the iconic doughnut chain will not only satisfy the cravings of doughnut enthusiasts but also provide a major opportunity for Krispy Kreme to expand its reach.
The rollout of Krispy Kreme doughnuts in McDonald’s restaurants will begin in the second half of this year and will take approximately two and a half years to complete. To meet the demand, Krispy Kreme will more than double its distribution, utilizing its efficient “hub and spoke” model. This model allows for the production hubs to send freshly made doughnuts to retail locations such as grocery stores and gas stations.
For the duration of the agreement, McDonald’s will be the exclusive fast-food partner for Krispy Kreme in the U.S. This partnership is a significant milestone for Krispy Kreme, as it currently delivers its doughnuts to 6,800 third-party stores. With McDonald’s 13,500 restaurants in the U.S. and plans to open 900 new locations by 2027, Krispy Kreme will have the opportunity to expand its distribution network and increase its overall efficiency and productivity.
Krispy Kreme CEO Josh Charlesworth expressed his optimism about the partnership, stating that they can service approximately 6,000 restaurants with their existing infrastructure. Moreover, Charlesworth mentioned that the increased demand from McDonald’s and other new customers will allow their production lines to churn out higher volumes with minimal additional costs, making their system more profitable.
The relationship between McDonald’s and Krispy Kreme began about a year and a half ago when McDonald’s tested selling Krispy Kreme doughnuts at nine restaurants. The success of the test led to an expansion to roughly 160 restaurants across Kentucky. These initial restaurants will continue selling the doughnuts during the nationwide rollout.
For McDonald’s, the addition of Krispy Kreme doughnuts enhances their bakery and breakfast offerings. As the burger chain has been focusing on coffee, the doughnuts provide a perfect pairing for the beverage. McDonald’s customers will have the option to order original glazed, chocolate iced with sprinkles, and chocolate iced cream-filled doughnuts individually or in packs of six, available all day.
Looking ahead, Krispy Kreme has revised its outlook and expects to reach more than 100,000 points of access for its doughnuts globally, up from the previous estimate of 75,000 locations. Currently, Krispy Kreme doughnuts can be found in over 14,100 stores across 39 countries, and this partnership with McDonald’s will undoubtedly contribute to their global presence.
While Krispy Kreme’s shares have experienced a 20% decline over the past year, with concerns about competition from weight loss drugs affecting future sales, McDonald’s stock has seen a 2% increase. McDonald’s ability to provide affordable food and drinks has resonated with consumers. With a market value of $201 billion, McDonald’s remains a strong player in the fast-food industry.
In conclusion, the nationwide availability of Krispy Kreme doughnuts at McDonald’s restaurants is an exciting development for doughnut lovers across the United States. This partnership not only benefits both chains but also provides an opportunity for Krispy Kreme to expand its reach and enhance its distribution network. With the rollout set to begin this year, customers can soon enjoy their favorite Krispy Kreme treats alongside McDonald’s menu offerings.
