Krispy Kreme stocks increased by almost 40% in a single day after McDonald’s confirmed their collaboration.
Krispy Kreme shares surged by 40% after the fast-food chain company said it reached a deal with industry-leading McDonald’s restaurants across the US. By the end of 2026, McDonald’s will offer Krispy Kreme doughnuts across their United States branches. The announcement came after a successful test at around 160 of its outlets in Indiana and Kentucky.
McDonald’s Partnership Dramatically Changes the Future of Krispy Kreme
Following the revelation, the shares of Krispy Kreme surged by the end of Tuesday by 40% from the previous day to $17.35 marking the highest share price since January 2022. However, there were no noticeable improvements in Dow Jones fast food giant McDonald’s shares. They stayed flat at $278 per share.
On Tuesday, Krispy Kreme announced plans to elaborate on the availability of their doughnuts to McDonald’s locations nationwide. According to McDonald’s, the Charlotte, N.C.- based company will distribute its doughnuts to selected McDonald’s restaurants in the second half of 2024 and shortly it will reach nationwide availability, mostly by the end of 2026.
Besides the collaboration of McDonald’s and Krispy Kreme, other fast food chains are also teaming up with some other snack makers. Subway, which recently partnered with Aunty Anne’s and Cinnabon in January to add new snacks to its menu. Following that, Wendy’s and Cinnabon together introduced a new dessert in February.
The teaming up of McDonald’s with Krispy Kreme will increase the number of locations at which Krispy Kreme doughnuts or cookies can be purchased. The company announced it in a new press release, adding that a new phased rollout will begin by the end of 2024, expanding to participate in the different nationwide locations of McDonald’s by 2026. Krispy Kreme is expected to deliver three of its most popular flavors.
As of now, McDonald’s has over 13,000 US locations among which 95% are operated by independent owners. According to Josh Charlesworth, the company could serve 6,000 McDonald’s restaurants only with its existing supply chain network. While sharing the news of the collaboration, a rep for Krispy Kreme remarked that it will seek to build an infrastructure accordingly.
Read more: Intermittent Fasting May Increase Chances Of Dying from Heart Disease, Study Finds
A rep further added that Krispy Kreme’s Original Glazed, Chocolate Iced with Sprinkles, and Extra Chocolate Iced Kreem Filled doughnuts will be regularly delivered to McDonald’s locations. Meanwhile, Guillaume Huinn, a senior marketing director at McDonald’s confirmed it saying Krispy Kreme doughnuts will be sold individually, or in a box of six, all day. He further gave an insight into the collaboration saying he was looking to come up with a “Krispy Kreme Doughnut x McDonald’s shake combo.”
Back in October 2022, Krispy Kreme and McDonald’s launched a limited partnership to run a “small-scale test” to see the response for selling Krispy Kreme doughnuts at more than 160 McDonald’s restaurants, particularly in the areas of Lexington, Ky., and Louisville. As per the reports, the current collaboration has nothing to do with the old one, as Krispy Kreme doughnuts will continue to be served at those locations along with the new locations.
In addition to McDonald’s, Krispy Kreme has also been conducting a somewhat similar test run with Costo in international markets. So far the responses are positive, the company told investors last year.