(NewsNation) — Krispy Kreme and McDonald’s USA announced Tuesday that they have jointly decided to end their partnership.
The partnership will end effectively on July 2, according to a news release published Tuesday.
“Our two companies partnered very closely, each supporting execution, marketing, and training, delivering a great consumer experience in approximately 2,400 McDonald’s restaurants,” said Josh Charlesworth, Krispy Kreme CEO. “Ultimately, efforts to bring our costs in line with unit demand were unsuccessful, making the partnership unsustainable for us.”
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Krispy Kreme last month said it was reassessing its partnership with McDonald’s, which aimed to offer doughnuts at the burger chain’s U.S. restaurants nationwide.
The doughnut chain also previously acknowledged it was pausing a “phased market rollout” of Krispy Kreme doughnuts to McDonald’s restaurants nationwide.
“We were excited and pleased to partner with Krispy Kreme,” added Alyssa Buetikofer, McDonald’s USA’s chief marketing and customer experience officer. “We had strong collaboration with Krispy Kreme and they delivered a great, high-quality product for us, and while the partnership met our expectations for McDonald’s and Owner/Operators, this needed to be a profitable business model for Krispy Kreme as well.”
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Krispy Kreme said its net revenue declined $59.4 million, 20.1%, primarily due to a reduction associated with the sale of a majority stake in Insomnia Cookies.
As of March, Krispy Kreme doughnuts were available in 2,400 McDonald’s restaurants.
