Krispy Kreme Doughnuts To Be Available In McDonald's; Stock Climbs

(RTTNews) - Krispy Kreme, Inc. announced a doughnut partnership with McDonald's USA LLC, affiliated to fast-food giant McDonald's Co. Under the deal, fresh Krispy Kreme doughnuts will be delivered daily at McDonald's restaurants across the United States.

Following the news, Krispy Kreme shares were climbing more than 16 percent in pre-market activity on Nasdaq to trade at $14.48.

The companies plan to begin phased rollout in the second half of fiscal 2024, while nationwide availability at participating restaurants is expected by the end of 2026.

The latest deal follows a successful test at 160 McDonald's restaurants in the Lexington and Louisville, Kentucky areas. These pilot restaurants will continue to serve Krispy Kreme doughnuts during the nationwide rollout.

The doughnut maker will deliver three of its most popular doughnuts fresh to McDonald's restaurants every day. They'll be available individually, or in boxes of six, starting at breakfast and lasting throughout the day - while supplies last.

The available doughnuts include the iconic Original Glazed Doughnut; Chocolate Iced with Sprinkles Doughnut, which is a chocolatey twist on the original, dipped in chocolate icing and covered in rainbow sprinkles; as well as the Chocolate Iced Kreme Filled Doughnut.

To celebrate the partnership, Krispy Kreme will give one free Original Glazed Doughnut to all guests who visit U.S. Krispy Kreme shops between 5 p.m. and 9 p.m. today on March 26.

Tariq Hassan, McDonald's USA's Chief Marketing and Customer Experience Officer, said, "Since the launch of breakfast nearly 50 years ago, we've continued to offer new menu items, flavors and experiences that have made McDonald's an irreplaceable part of fans' morning routines. 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 has around 13,500 U.S. Restaurants, of which ninety-five percent are owned and operated by independent business owners.

With the partnership, Kreme Krispy said it expects to more than double its points of access by the end of 2026. The partnership accelerates the development of its existing Delivered Fresh Daily channel.

Krispy Kreme and McDonald's plan to provide more details regarding the nationwide rollout in the coming months.