From CNBC: 2025-05-08 12:05:00

Krispy Kreme stock plummeted 24% after suspending its nationwide rollout with McDonald’s due to economic uncertainty. Over 2,400 McDonald’s locations carried Krispy Kreme doughnuts before the suspension. Truist downgraded the stock to hold, expressing doubt in management’s strategy. Both companies announced last year that all McDonald’s locations would carry Krispy Kreme doughnuts by 2026.

Sales fell below projections, prompting Krispy Kreme to reassess its deployment schedule with McDonald’s. McDonald’s reported a 3.6% decline in U.S. same-store sales, attributing it to reduced consumer spending. Krispy Kreme cited profitability concerns for slowing the rollout, reporting a net loss of $33 million for the quarter ended March 30. The company is looking to stimulate demand and cut costs to achieve sustainable, profitable growth.

To supply all McDonald’s U.S. locations, Krispy Kreme was investing in expanding capacity quickly. The company reported three quarters of net losses in the past year. Krispy Kreme uses a “hub and spoke” model to efficiently distribute its treats. The company is considering pruning unprofitable locations, potentially affecting up to 10% of its U.S. network. Krispy Kreme also pulled its 2025 outlook due to economic softness and uncertainty surrounding the McDonald’s partnership.



Read more at CNBC:: Krispy Kreme stock plunges after McDonald’s rollout pause