Krispy Kreme, McDonald’s announce joint decision to end partnership

Krispy Kreme (DNUT) and McDonald’s USA (MCD) announced that, “after careful consideration,” the companies have jointly decided to end their partnership, effective July 2. Josh Charlesworth, Krispy Kreme CEO, said: “Our two companies partnered very closely, each supporting execution, marketing, and training, delivering a great consumer experience in approximately 2,400 McDonald’s restaurants. Ultimately, efforts to bring our costs in line with unit demand were unsuccessful, making the partnership unsustainable for us.” Alyssa Buetikofer, McDonald’s USA’s Chief Marketing and Customer Experience Officer, added: “We were excited and pleased to partner with Krispy Kreme. We had strong collaboration with Krispy Kreme and they delivered a great, high-quality product for us, and while the partnership met our expectations for McDonald’s and Owner/Operators, this needed to be a profitable business model for Krispy Kreme as well.” The companies added: “To drive future sustainable growth, Krispy Kreme is focused on making its fresh doughnuts available in more places, not just to eat but to share, through its two largest opportunities: profitable U.S. expansion through high-volume retail points of distribution and capital-light international franchise growth. Krispy Kreme represented a small, non-material part of McDonald’s breakfast business. Breakfast is a core pillar of McDonald’s business strategy, and the company remains focused on delivering delicious, affordable and convenient options to help fans start their day.”