Krispy Kreme has officially terminated its much-hyped national partnership with McDonald’s, as Krispy Kreme CEO Josh Charlesworth said it had created “unsustainable operating costs,” leading to lease impairment and termination costs of $28.9 million. In other words, not enough doughnuts made enough dough. The fallout from the failed partnership was laid bare in Krispy Kreme’s latest earnings report, a sharp contrast from McDonald’s own resilient financial showing amid sector headwinds.
Krispy Kreme and McDonald’s mutually agreed to end their partnership, effective July 2, 2025, after an attempt to distribute Krispy Kreme doughnuts in approximately 2,400 U.S. McDonald’s locations. Initially hailed as a major growth opportunity, the collaboration floundered under operational pressure and insufficient returns.
