Over the last two years, burger giant McDonald's (MCD) has been carefully testing the idea of partnering with donut maker Krispy Kreme (DNUT) . While the fast-food chain is known for several long-time dessert favorites like the McFlurry and handheld pies around since the 1960s, other dessert plans such as the McCafé full of macarons and other pastries failed to take off in the U.S. with the same success as in some international markets.
Many of the desserts that McDonald's tests, including the Holiday Pie with custard and sprinkles and the Apple Fritter, were seasonal items that eventually disappeared from menus.
Related: McDonald's Sweetens Krispy Kreme Offerings
After first bringing Krispy Kreme donuts to nine restaurants in or around Kentucky's Louisville in October 2022, McDonald's brought the Original Glazed Donut, the Chocolate Iced With Sprinkles Donut and the Chocolate Iced Glazed Donut to more locations last year. This week, it announced that it will now take its Krispy Kreme partnership nationwide.
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McDonald's: 'Our fans' love for Krispy Kreme runs deep'
"This partnership is an exciting next step in that journey and a chance to unlock new business opportunities in the breakfast category and throughout the day," McDonald's Chief Marketing and Customer Experience Officer Tariq Hassan said in a statement. "Our fans' love for Krispy Kreme runs deep, and we can’t wait to make it even easier for them to satisfy their sweet tooth at McDonald’s restaurants across the country."
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The promotion will take time to roll out to the more than 13,500 McDonald's locations currently operating in the U.S. but the chain expects to start selling the three above-mentioned donuts at all of its locations by the end of 2027.
After the news of the announcement broke, Krispy Kreme stock jumped by more than 20% to $15.01 per share as of Tuesday afternoon. McDonald's shares stayed steady — in the last month, they have been down 7% at $277.57.
McDonald's and Krispy Kreme hope for greater brand recognition
McDonald's plans to open another 10,000 new restaurants by 2027 and the Krispy Kreme partnership is designed as a way to bring greater recognition of the chain as a place to go during breakfast hours. Krispy Kreme, in turn, hopes the partnership with such a major chain will help with brand recognition and resources for expanding it to more pockets of the U.S.
The move is also expected to take on other fast-food giants that currently dominate the grab-and-go breakfast space such as Starbucks (SBUX) , whose menu of coffee paired with a selection of pastries and breakfast sandwiches, make it a more natural association with breakfast in many consumers' minds. Krispy Kreme, which is smaller than the two chains, also carries with it those breakfast associations but can benefit from a partnership with a larger chain.
"The top request we receive from consumers, every day, is, 'please bring Krispy Kreme to my town,'" Krispy Kreme President and CEO Josh Charlesworth said in his own statement. "Partnering with McDonald’s on a national scale will provide our fans and doughnut lovers unprecedented daily access to fresh doughnuts and the joy that is Krispy Kreme."
