The McDonald Krispy Kreme doughnut partnership marks the end of a sweet alliance that captured breakfast lovers’ hearts nationwide. Launched in March 2024 after a successful pilot in Kentucky, the collaboration brought Krispy Kreme’s Original Glazed, Chocolate Iced with Sprinkles, and Chocolate Iced Kreme‑Filled doughnuts to about 2,400 U.S. McDonald’s locations. However, as of July 2, 2025, customers will no longer be able to pick up a doughnut with their Egg McMuffin—side effects include shaken stock prices for the doughnut chain and strategic recalibration for both brands.
McDonald Krispy Kreme end doughnut partnership—What happened?
From the very beginning, this was an ambitious venture. In spring 2024, Krispy Kreme and McDonald’s announced a phased rollout that would bring freshly delivered doughnuts to McDonald’s breakfast menus, aiming for nationwide availability by the end of 2026. A pilot in Kentucky, covering around 160 stores, demonstrated strong consumer excitement, prompting expansion to roughly 2,400 outlets.
But by May 2025, Krispy Kreme paused further expansion after the nationwide rollout showed underwhelming demand and rising operational inefficiencies. Despite good consumer reception and smooth execution, the business model failed to align with Krispy Kreme’s profit goals. CEO Josh Charlesworth acknowledged that “efforts to bring our costs in line with unit demand were unsuccessful, making the partnership unsustainable”.
According to a joint declaration from the manufacturers, the collaboration “met expectations” on McDonald’s facet but didn’t supply a feasible monetary version for Krispy Kreme. As a result, this collaboration will expire on 2 July 2025, bringing an abrupt end to a partnership that began with great expectations 12 months ago.
Why did the partnership falter?
1. Economies of scale mismatch
Krispy Kreme’s plan hinged on a nationwide scale, yet faced cost inefficiencies. The logistics of delivering fresh doughnuts daily proved too expensive for the slower-than-expected sales in McDonald’s outlets.
2. Limited footprint
With 2,400 test locations, the rollout covered less than 20% of McDonald’s ~14,000 U.S. restaurants. Without a broader scale, the cost per unit remained too high.
3. Consumers cutting back
The fast-food industry has felt the pinch of inflation and tighter consumer budgets. McDonald’s first-quarter same-store sales dropped significantly, and Krispy Kreme also saw steep stock declines—down over 70% in 2025—driven by reduced demand.
4. Strategic refocus
Krispy Kreme plans to double down on high-margin retail partnerships and expand internationally via franchise models. McDonald’s, meanwhile, will concentrate on core breakfast staples, including the soon-to-return Snack Wrap.
Implications for breakfast lovers
If you enjoyed grabbing a doughnut with your Big Breakfast, you’ll have until July 2, 2025, to savor the collaboration. After that, stand-alone Krispy Kreme locations will be the only places to get that iconic glazed delight.
McDonald’s customers may instead see the return of beloved items—such as the Snack Wrap—and new additions like McCrispy Strips, which are part of their strategy to reinvigorate breakfast offerings.
What comes next for Krispy Kreme and McDonald’s?
Krispy Kreme is pivoting aggressively. With its doughnuts off the McDonald’s menu, the chain will push expansion through grocery, large‑volume retail, and deeper penetration of international franchise markets. The brand has already paused dividends, shuttered underperforming outlets, and shifted toward capital-light global growth.
McDonald’s, on the other hand, is not viewing this as a setback—rather, a realignment. The brand stresses that the doughnuts made up a “small, non-material part” of the breakfast line-up, and it’s refocusing on high-performing staples, affordability, and convenience.
Lessons from a high-profile alliance
Cultural alignment matters—but isn’t enough.
Even two well-loved brands can stumble if their operational models aren’t synergized.
Scale drives sustainability
Pilot successes like Kentucky’s 160‑store test don’t guarantee mass viability. Rollouts must scale financially.
Consumer trends shift fast.
Amid economic inflation, discretionary breakfast treats may morph into a niche rather than mainstream items.
Flexibility is key
Both brands verified adaptability—Krispy Kreme is redefining its distribution strategy, even as McDonald’s is cleaning its menu lineup.
Final takeaway
The McDonald Krispy Kreme and doughnut partnership ends on July 2, 2025. It was an exciting experiment that showcased potential synergies, but ultimately failed in cost alignment. Doughnut lovers still have a couple of weeks to indulge, but after that, Krispy Kreme fans will need to visit dedicated locations.
This case highlights the razor-thin margins in fast food and how even seemingly obvious pairings must be backed by sound economics. While both companies move ahead in divergent directions, fans get clarity—and some, perhaps, a last glazed treat one final time.
