McDonald’s and Krispy Kreme announced a new partnership that will see three types of Krispy Kreme doughnuts available for sale at McDonald’s restaurants later this year. The partnership aims to expand the reach of both brands, with Krispy Kreme shares jumping over 39% following the announcement. However, some experts warn that brand partnerships can be risky and potentially weaken the respective brand names. For McDonald’s, the addition of Krispy Kreme doughnuts comes as prices on other menu items are rising, leading some lower-income customers to opt for cooking at home instead of dining out.
The Krispy Kreme doughnuts will be available for purchase at McDonald’s individually or in a pack of six, starting at breakfast and continuing until they run out. The partnership between the two companies began as a test at 160 restaurants in Kentucky and will be rolled out nationwide at participating McDonald’s locations by the end of 2026. This phased rollout reduces the risk for both parties and gives them time to assess customer demand.
With nearly 13,500 US locations, McDonald’s vastly outnumbers Krispy Kreme, which has been scaling its supply chain to keep up with its promise to deliver fresh doughnuts daily. The partnership could significantly increase Krispy Kreme’s reach, with plans to more than double its points of access by the end of 2026. Krispy Kreme has been focusing on its doughnut business operations and recently returned to the market through an IPO, though its stock is still trading below its IPO price of $17. Analysts question how the partnership will impact Krispy Kreme’s previous plans to expand locations and the potential competition with existing locations near McDonald’s outlets.
The partnership between McDonald’s and Krispy Kreme is not the first time that competitors have teamed up, with Wendy’s partnering with Cinnabon earlier this year for its breakfast lineup. Research suggests that brand partnerships can open up new customer possibilities, brand expansions, and innovation. However, there is also a concern that partnerships can weaken the respective brand names. Truist analysts highlight challenges that may arise, such as how the Krispy Kreme doughnut delivery model will service rural McDonald’s locations more than 20 miles outside of urban centers.
As part of the partnership celebration, Krispy Kreme is offering a free glazed doughnut to guests visiting a Krispy Kreme location between 5 and 9 pm on Tuesday. This promotion aims to generate excitement and drive traffic to both Krispy Kreme and McDonald’s locations. McDonald’s Chief Financial Officer Ian Borden has acknowledged the pushback from customers as prices rise and indicated that the chain would cut prices on some menu items to address the affordability issue. The long testing period for the Krispy Kreme doughnuts at McDonald’s reduces risk for both parties and allows for adjustments before the nationwide rollout.
