A move sure to delight doughnut lovers across America, McDonald’s has announced plans to bring Krispy Kreme’s glazed treats to its restaurants nationwide by the end of 2026. This new partnership will make the fast-food giant the exclusive seller of Krispy Kreme doughnuts in the quick service restaurant space.
The rollout kicks off in the second half of 2024, but will take roughly 1.5 years to fully implement as Krispy Kreme expands production to meet customer demand. Currently, the doughnut maker distributes to around 6,800 third-party retail locations, but will need to more than double that capacity to supply McDonald’s massive footprint of 13,500 U.S. locations.
For Krispy Kreme, adding the McDonald’s deal is a major coup that will exponentially increase its points of distribution and accessibility for customers. The company’s CEO, Josh Charlesworth, revealed that while their current infrastructure can service about 6,000 McDonald’s restaurants, they are proactively expanding production hubs to cover the remaining 7,500 locations.
The partnership is a win-win, allowing McDonald’s to bolster its breakfast offerings with a craveable, iconic brand. Customers will be able to get their fix of original glazed, chocolate iced with sprinkles, and chocolate cream-filled Krispy Kreme doughnuts all day long.
On the Krispy Kreme side, better utilizing their production capacity by meeting McDonald’s demand is expected to significantly boost profitability with minimal added costs. Their “hub and spoke” distribution model is perfectly suited to get fresh doughnuts daily to McDonald’s widespread network.
Wall Street clearly has an appetite for the deal, with Krispy Kreme’s stock soaring 39% on the announcement. The doughnut brand now forecasts over 100,000 global points of access for its treats, up from prior estimates of 75,000.
After successful test pilots that exceeded expectations, this national partnership gives McDonald’s a major breakfast boost and their new partner an enviable new distribution channel.
