Why Krispy Kreme’s McDonald’s partnership ended

Krispy Kreme said its McDonald’s partnership became unsustainable because costs could not be brought into line with doughnut demand. The companies’ termination announcement described an arrangement that met McDonald’s expectations but failed to deliver a workable business model for its supplier.

The planned rollout#

The companies announced the national expansion on March 26, 2024, with a phased rollout beginning that year’s second half and nationwide availability at participating restaurants expected by the end of 2026. It followed a test at 160 restaurants around Lexington and Louisville, Kentucky, where the companies said demand exceeded expectations.

The offering comprised Original Glazed, Chocolate Iced with Sprinkles and Chocolate Iced Kreme Filled doughnuts, delivered fresh daily and sold singly or in six-packs from breakfast onward, while supplies lasted.

For Krispy Kreme, the stated economic rationale was denser distribution and better use of production capacity. CEO Josh Charlesworth expected the partnership to more than double Krispy Kreme’s points of access by the end of 2026. The company said it was expanding its supply chain, support team, technology, equipment and training.

How the agreement ended#

The underlying business agreement, dated March 22, 2024, was between McDonald’s USA and Krispy Kreme Doughnut Corporation, an indirect, wholly owned subsidiary of Krispy Kreme, Inc. According to the June 2025 Form 8-K, the parties signed a termination agreement on June 23, announced it June 24 and set July 2 as the effective date. The filing said confidentiality, indemnification and certain miscellaneous obligations would survive termination.

By the termination announcement, the partnership had reached approximately 2,400 McDonald’s restaurants. Krispy Kreme CEO Josh Charlesworth said attempts to align costs with unit demand had failed. McDonald’s USA marketing and customer experience chief Alyssa Buetikofer said the arrangement met expectations for McDonald’s and its owner/operators, but also needed to be profitable for Krispy Kreme. The release described the doughnuts as a small, non-material part of McDonald’s breakfast business.

Krispy Kreme subsequently reported that termination removed about 2,400 fresh delivery locations in the third quarter of fiscal 2025.

What investors alleged#

The consolidated complaint filed January 30, 2026 names West Palm Beach Police Pension Fund as lead plaintiff and Krispy Kreme, Charlesworth and former CFO Jeremiah Ashukian as defendants. It proposes a class of investors who purchased or otherwise acquired Krispy Kreme securities from March 26, 2024 through May 7, 2025 and suffered damage.

The complaint alleges that the executives knew or recklessly disregarded the concealment of adverse business information. The complaint also cited former employees’ accounts that management could access data on McDonald’s deliveries, returns and sales. Its introduction says allegations beyond the plaintiff’s own acts rest on information and belief, based on counsel’s investigation. These are allegations about what executives knew, not judicial findings establishing that knowledge.

Krispy Kreme’s August 6, 2026 quarterly filing said shareholder suits filed May 16 and June 30, 2025 in federal court in North Carolina had been consolidated. The defendants were the company, its CEO and its former CFO. Briefing on its motion to dismiss finished May 21, 2026; a decision remained pending as of that August filing.

In the same litigation disclosure, the company said it intended to defend the claims and could not yet predict with certainty what damages might be awarded if liability were found.

Correction, October 14, 2026: An earlier version asserted unsupported private executive knowledge and said a gap between public statements and internal results produced the lawsuit. It also presented unsupported operating theories as fact. This revision removes those claims, documents the partnership’s chronology and distinguishes investor allegations from established facts, with litigation status dated to August 2026.