On Tuesday, McDonald’s plans to sell Krispy Kreme doughnuts at its restaurants nationwide by the end of 2026.
The rollout is expected to start in the second half of the year and is expected to take nearly two and a half years as the donut chain more than doubles its distribution to satisfy the partnership. For the duration of the agreement, McDonald’s will be the exclusive fast-food partner for Krispy Kreme in the U.S., CNBC News reported. The partnership was first tested at 160 McDonald’s locations in Kentucky and Indiana last year.
Krispy Kreme CEO Josh Charlesworth told CNBC that demand exceeded both companies’ expectations.
Shares of Krispy Kreme spiked 24% in morning trading Tuesday following the announcement. The stock is on track for its best day ever.
The partnership with McDonald’s is a major opportunity for Krispy Kreme to expand. The company delivers its doughnuts to 6,800 third-party stores as of Dec. 31. McDonald’s has roughly 13,500 restaurants in the U.S. and plans to open 900 more by 2027, CBS News reported.
The partnership could also help McDonald’s bolster its breakfast and coffee sales.
“We think we can service about 6,000 restaurants with our existing infrastructure, mostly doughnut shops, which have excess capacity,” Krispy Kreme CEO Josh Charlesworth told CNBC.
Under the collab, Krispy Kreme will deliver three versions of its donuts — glazed, chocolate iced with sprinkles, and chocolate iced with a cream filling — to McDonald’s locations each morning. Customers have the option of buying donuts individually or in a box of six.
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