Krispy Kreme, famous for its American-style glazed donuts, has partnered with McDonald's. The partnership to sell donuts at McDonald's locations nationwide caused Krispy Kreme's stock price to surge nearly 40%.
On the 26th (local time), Krispy Kreme and McDonald's announced the signing of this business partnership. Starting in the second half of this year, three types of Krispy Kreme donuts, including the Original Glazed, will be sold at select McDonald's stores. The offering is expected to expand to McDonald's locations nationwide by the end of 2026.
This is not Krispy Kreme's first collaboration with other retail companies. Currently, Krispy Kreme donuts are also consigned for sale at grocery chains such as Walmart and Kroger. However, this partnership with McDonald's is seen as a significant opportunity for Krispy Kreme to expand its distribution channels. As of the end of last year, Krispy Kreme had 6,800 third-party stores, whereas McDonald's has 13,500 locations across the U.S. Additionally, McDonald's plans to add 900 new stores by 2027.
Josh Charlesworth, CEO of Krispy Kreme, explained, "Through this partnership, the number of accessible points where consumers nationwide can purchase Krispy Kreme donuts will more than double."
Not only Krispy Kreme, which succeeded in expanding its distribution channels without pouring massive supply chain costs, but also McDonald's benefits from strengthening its breakfast menu. Recently, McDonald's has faced a decline in customer visits due to prolonged high inflation, and its performance was hit hard by a boycott in the Arab world following its announcement to provide free meals to the Israeli military and hospitals. The two companies had previously trialed donut sales at some McDonald's locations starting in 2022. Judging the results were not bad, the partnership was formed.
Krispy Kreme's stock price, which had been declining earlier this year, surged on the day amid expectations that the partnership with McDonald's would lead to increased sales. On the New York Stock Exchange, Krispy Kreme's stock closed the regular session at $17.35 per share, up 39.36% from the previous close. It is also showing a 4% rise in after-hours trading. McDonald's stock closed flat.
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