​Krispy Kreme & McDonald's: A Sweet Expansion Across the U.S. by 2026

​Krispy Kreme & McDonald's: A Sweet Expansion Across the U.S. by 2026

Posted by Emma on 7th Apr 2024

The recent announcement from Krispy Kreme about their nationwide expansion of doughnuts in all McDonald's restaurants across the U.S. by the end of 2026 has sent its shares soaring by 23%. This expansion comes from a successful trial in 160 McDonald's locations in Lexington and Louisville, Kentucky, which began in October 2022. The full-scale rollout is set to start in the second half of 2024, marking a significant milestone in their partnership.

Under the exclusive agreement, Krispy Kreme commits to not distributing its doughnuts to any other quick-service restaurants in the U.S. until after December 31, 2026. This strategy is part of Krispy Kreme's broader aim to establish over 75,000 access points globally, encompassing quick-service restaurants and grocery stores, using a hub-and-spoke model. Impressively, Krispy Kreme concluded 2023 with an additional 2,300 points of access.

The enthusiasm around this partnership has not only boosted Krispy Kreme's shares to an eight-month high but is also setting the stage for an unprecedented rise in share value. On the other hand, McDonald's, which operates about 14,000 stores in the U.S., has ambitious plans to open 10,000 more restaurants worldwide by 2027. Despite this expansion, McDonald's faces challenges in international markets, including boycotts related to the Israel-Hamas conflict and economic downturns in China.

The Krispy Kreme and McDonald's partnership is making waves in the U.S., but what does this mean for the U.K.? Could we see this sweet collaboration extend across the pond? In the comments below, share your thoughts and whether you hope to see Krispy Kreme doughnuts in UK McDonald's restaurants!