McDonald's, Krispy Kreme ending doughnut deal after one year: ‘Unsustainable for us'

Core Insights - McDonald's and Krispy Kreme will end their partnership in the US by July due to cost management issues [1][2] - The partnership aimed to sell Krispy Kreme's doughnuts at over 14,000 McDonald's locations, but only 2,400 stores offered the product [1][5] - Krispy Kreme's CEO stated that aligning costs with unit demand was unsuccessful, making the partnership unsustainable [2] Company Performance - Krispy Kreme has withdrawn its annual forecast and is reassessing the deployment schedule for the partnership [3][7] - The company's shares have decreased by approximately 70% this year, reflecting significant market challenges [3] - McDonald's indicated that Krispy Kreme was a small, non-material part of its breakfast business, which is a core pillar of its strategy [6] Market Strategy - McDonald's has been focusing on enhancing its breakfast menu by introducing new items and marketing efforts [4] - The partnership's failure highlights the challenges in integrating external products into established fast-food operations [1][2]