Krispy Kreme has officially ended its national partnership with McDonald's, citing unsustainable operating costs and a total of $28.9 million in lease impairment and termination costs. The collaboration, initially intended to distribute doughnuts in approximately 2,400 McDonald's locations, faced challenges of operational pressure and insufficient returns. In the Q2 2025 earnings report, Krispy Kreme reported a revenue decline of 13.5% compared to the previous year, resulting in a significant net loss. Leadership noted that these financial issues necessitated a strategic retreat from projected growth plans.
Krispy Kreme has terminated its national partnership with McDonald's due to unsustainable operating costs and incurred lease impairment and termination costs of $28.9 million.
The partnership, created to distribute Krispy Kreme doughnuts in 2,400 McDonald's locations, has been labeled unsustainable due to operational pressure and insufficient returns.
Krispy Kreme's Q2 2025 earnings report revealed a revenue decline of 13.5% year-over-year, missing analyst projections along with a net loss for the quarter.
Krispy Kreme's leadership indicated that the partnership's financial repercussions led to a strategic retrenchment, ending the planned coast-to-coast doughnut blitz by 2026.
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