No More McDoughnuts: McDonald’s and Krispy Kreme Terminate Partnership
In 2024, McDonald’s and Krispy Kreme joined hands to offer something sweet: fresh doughnuts at select McDonald’s locations. At first, people were excited. We could grab a hot coffee and a glazed doughnut in one stop. It felt like the perfect combo.
But fast forward to 2025, and that partnership is coming to an end. McDonald’s will remove Krispy Kreme doughnuts from its menu by July 2, officially ending their partnership across all locations. The plan to expand this offer across thousands of locations didn’t work out as hoped.
Why did this happen? Was it pricing, profits, or something else? The partnership started, what went wrong, and what it means for us as customers. It’s a short-lived deal that leaves behind lessons for both companies and for the future of food mashups like this. Let’s dive in.
Rising Costs Crush Krispy Kreme
In June 2025, both companies announced they would end the deal as of July 22. Krispy Kreme CEO Josh Charlesworth explained it plainly: They couldn’t make doughnuts at a cost low enough to match customer demand at McDonald’s. The extra heating, packaging, shipping, and training all added up. The math just didn’t work.
Why Customers Pulled Back
We were excited at first. But soon, prices felt too high, especially compared to buying a doughnut directly at a Krispy Kreme shop. In many cases, the doughnuts weren’t as fresh. Foot traffic also slowed. The novelty faded quickly. A McDoughnut was fun once or twice, but not enough to support a billion-dollar rollout.
McDonald’s Didn’t Lose Much
McDonald’s stated that the doughnuts made up only a minor part of its breakfast menu and weren’t a major focus in overall sales..They liked the product. They liked working with Krispy Kreme. But McDonald’s didn’t rely on doughnuts to capture morning sales. Instead, they’re bringing back big sellers, like the McCrispy Chicken Sandwich and Snack Wrap, and focusing on affordable menu staples.
Krispy Kreme Feels the Heat
The end of the deal hit Krispy Kreme’s bottom line hard. Their stock sank more than 73% in 2025. They also paused their full-year profit forecast in May and reported a net loss of $33 million in Q1 2025. Analysts say the partnership’s collapse was expected, and that the market had already priced it i.
What’s Next for Each Company
Krispy Kreme is refocusing its strategy. They’ll expand in grocery and high-volume retail and grow internationally through franchise deals. They’re also cutting debt and aiming for stable, profitable growth.
McDonald’s is doubling down on its breakfast base. No more doughnuts at their drive-thrus, but expect to see upgraded marketing and new or returning items.
Lessons Learned for Food Collaborations
This partnership shows us that novelty isn’t enough. We may like food mashups, but only if they’re fresh, priced right, and easy to sell. Costs, supply chains, and economics matter. Without these, even a big-name combo can flop.
Final Bite
We cheered when the McDoughnuts launched. But by July 2, most of us probably forgot about them. In the end, the deal didn’t meet cost or demand expectations. McDonald’s barely missed them. But for Krispy Kreme, it was a costly experiment.
Still, the story isn’t over. The doughnut world will keep evolving. We may see better-designed mashups in the future. But for now, the McDoughnut’s chapter has closed. The question is: what tasty combo comes next?
FAQS
McDonald’s and Krispy Kreme are ending their partnership. Starting July 2, McDonald’s locations across the U.S. will stop offering Krispy Kreme doughnuts on their menu.
No, it’s not paused, it’s officially ending. Both companies decided to stop the deal because it cost too much and didn’t work as planned.
Krispy Kreme’s costs went up too fast. They spent more than they earned from McDonald’s sales, which hurt profits and caused the stock price to drop.
Disclaimer:
This content is for informational purposes only and not financial advice. Always conduct your research.