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The delicious partnership between McDonald’s and Krispy Kreme, which began with a test run in 2022, might be getting even sweeter. The brand discussed the future of their partnership, accessing the success of the pilot program so far, and an inevitable donut expansion nationwide.
On an earnings call, representatives discussed moving Krispy Kreme donuts into more McDonald’s locations beyond Kentucky, with priorities lying in New York, and the Northeast. The financial outlook for the two brands? They estimate they could generate $350 million in annual sales once expansion rolls out beyond Kentucky.
Chief executive Josh Charlesworth said that details would be provided in the future: “Discussions are ongoing and productive about an expanded partnership, and we’ll provide an update when we have it. We’re actually looking all over the country as we build out our plans for delivery fresh daily and quick service restaurants.”
The latest scoop
- The initial test saw Krispy Kreme doughnuts offered at select McDonald’s locations in Louisville, Kentucky.
- Currently, customers can choose from Original Glazed, Chocolate Iced with Sprinkles, and Chocolate Iced Kreme-Filled doughnuts.
- The positive response led to an expansion to 160 stores in Louisville and Lexington, Kentucky.
What’s Next?
- Both companies are in “advanced discussions” to expand the partnership.
- While details are still under wraps, Krispy Kreme CEO Josh Charlesworth expressed excitement about the collaboration’s potential.
- Potential expansion could involve:
- More McDonald’s locations: Bringing Krispy Kreme’s sweetness to a wider audience.
- New donut flavors: Imagine a McFlurry topped with a Krispy Kreme treat!
- National rollout: A nationwide donut dream come true?
- More partnerships with third-party delivery services in Washington DC, and Los Angeles.
Charlesworth continued on ensuring that Krispy Kreme could operate across a variety of sectors, saying: “modernizing the making and moving of donuts to ensure high quality and profitable growth”.
- For McDonald’s, it’s a chance to offer a premium dessert option with minimal effort.
- For Krispy Kreme, it’s a strategic move to reach new customers through thousands of McDonald’s locations.
- The partnership aligns with Krispy Kreme’s “Delivered Fresh Daily” (DFD) strategy of expanding beyond their own stores.
While the final details are yet to be glazed, the future looks promising for the McDonald’s and Krispy Kreme partnership.
