Parting is such sweet sorrow.
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 companies announced the plan in March 2024 and put it in motion a little more than six months ago, but the glaze soon wore off. Last month, Krispy Kreme put everything on pause, citing a need to boost sales. McDonald's will stop selling the doughnuts July 2.
It didn't take long to figure out that their strategy was cooked, the companies said.
“Ultimately, efforts to bring our costs in line with unit demand were unsuccessful, making the partnership unsustainable for us,” Krispy Kreme CEO Josh Charlesworth said in a joint release Tuesday.
Both food businesses have struggled lately to different degrees.
McDonald's has had trouble luring back customers despite various value offerings as inflation continues to take a toll on low- and middle-income consumers. Krispy Kreme, long a cult favorite, has posted millions of dollars in losses. McDonald's stock is down slightly so far this year; Krispy Kreme's has fallen more than 73%.
McDonald's said it was happy with the partnership but shrugged off its demise.
Krispy Kreme sweets were sold in only about 2,400 of McDonald's approximately 13,500 U.S. stores as of March 30, constituting just a “small” part of its big breakfast business, Mickey D's said. So the doughnut disappearance won't leave much of a hole.
