McDonald’s and Krispy Kreme have recently announced a new food partnership that will allow McDonald’s customers to pair Krispy Kreme doughnuts with their McCafe beverages. This collaboration will see three types of Krispy Kreme doughnuts available for purchase at McDonald’s restaurants later this year. While McDonald’s shares remained flat after the announcement, Krispy Kreme’s shares surged over 39%.
This partnership is not unique, as other competitors have also teamed up in the past to offer new menu items. While research suggests that brand partnerships can lead to new customers, brand expansions, and innovation, some retail experts caution that such collaborations could weaken the respective brand names. Truist analysts have raised concerns about the logistics of Krispy Kreme’s doughnut delivery model, especially in servicing rural McDonald’s locations that are located far from urban centers.
McDonald’s has been facing pushback from customers due to rising prices on its menu items, leading some lower-income Americans to opt for cooking at home instead of dining out. In response to this, McDonald’s has announced plans to cut prices on some menu items to address its “affordability” problem. The addition of Krispy Kreme doughnuts to the menu began as a test at 160 restaurants in Kentucky and will be rolled out nationwide by the end of 2026.
Krispy Kreme is aiming to expand its reach through this partnership with McDonald’s, as the doughnuts will be available for purchase individually or in packs of six. While there are fewer Krispy Kreme locations compared to McDonald’s, customers can also buy their doughnuts at other retailers, such as Walmart and grocery stores. The partnership is expected to double the points of access for Krispy Kreme by the end of 2026, as the company scales its supply chain to meet the increased demand.
Krispy Kreme has been focusing on its core business of doughnuts and has also invested in other ventures, such as Insomnia Cookies. The company returned to the market in 2021 through an IPO, although its stock price is currently trading below its IPO price of $17. Truist analysts are questioning how this new partnership with McDonald’s will impact Krispy Kreme’s plans for expansion and existing points of access located near McDonald’s restaurants. Overall, the partnership between McDonald’s and Krispy Kreme aims to capitalize on each brand’s strengths to attract new customers and drive business growth.
