The news: The Krispy Kreme–McDonald’s marriage is ending. The announcement comes less than two months after the companies said they were pausing a nationwide rollout—despite doughnuts being available in 2,400 McDonald’s locations—to reassess the profitability of the expansion.

Why is this happening? The math didn’t work.

• While the partnership met McDonald’s expectations, it wasn’t financially viable for Krispy Kreme, said Alyssa Buetikofer, McDonald’s USA’s chief marketing and customer experience officer.
• Krispy Kreme CEO Josh Charlesworth added that the company’s efforts to align distribution costs with unit-level demand fell short, making the collaboration unsustainable.

Looking ahead: Despite the setback, Krispy Kreme says it remains squarely focused on growth but aims to do so in a more sustainable manner. Its new plan is to expand in the US through high-traffic retail locations that can move a lot of product and to expand internationally through franchise partners to minimize its costs.

Our take: The breakup with McDonald’s comes at a tough time for Krispy Kreme—and for many other quick-service chains. The company has pulled its 2025 forecast, paused its dividend, and is now refocusing on what matters most: boosting cash flow, improving efficiency, and growing in a way that actually makes money in the US.

The McDonald’s partnership gave Krispy Kreme more visibility, but not enough profit. With costs rising and margins getting tighter, the company is shifting its focus from rapid expansion to ensuring its business is built to last.

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