📈 Business & Markets

The DONUT writes about doughnuts

Thursday, Mar 28, 2024

Image: TheStreet

A morning – or afternoon – stop at McDonald’s could soon include a sweet, holey treat. Following a regional test that exceeded both chains’ expectations, the fast-food giant will soon begin to sell Krispy Kreme doughnuts at its locations nationwide.

POV: you’re at the drive-thru window: Three Krispy Kreme doughnuts will be available to McDonald’s customers – original glazed, chocolate iced with sprinkles, and chocolate iced cream-filled. They can each be bought individually or in packs of six, and, like Kid Cudi, will be available Day ‘N’ Nite.

With the move, McDonald’s keeps taking aim at Starbucks and Dunkin’. This Krispy Kreme partnership could help the fast-food giant bolster its breakfast and coffee sales – a similar reason to why it recently launched its spinoff beverage-and-snack-focused brand, CosMc’s. In December, when McDonald’s debuted its first CosMc’s location, CEO Chris Kempczinski was quoted as saying: "This is a $100bn category that’s growing faster than the rest of [casual dining] and with superior margins. And it’s a space that we believe we have the right to win."

  • For Krispy Kreme, this partnership presents an opportunity to both expand and invest in its distribution.
  • The doughnut company says it can currently service ~6,000 of McDonald’s ~13,500 US locations with its existing “hub and spoke” infrastructure, but will need to expand its operations in order to service the rest.

đŸ©đŸ‘€ Looking ahead
 The partnership rollout will begin later this year, with Krispy Kreme doughnuts in McDonald's locations nationwide by 2026.

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