Krispy Kreme pauses doughnut rollout with McDonald’s after surprising lack of demand

New York Post - May 9th, 2025

Krispy Kreme announced a pause in its plan to expand doughnut sales across all McDonald’s locations nationwide, as the company reassesses its strategy with McDonald's to ensure profitability. Currently, Krispy Kreme doughnuts are available in over 2,400 McDonald’s restaurants, but the expansion will not proceed further in 2025. CEO Josh Charlesworth cited lower-than-expected demand as a reason for the pause, indicating the need to optimize sales and operations before continuing with the rollout. The partnership, initially set to offer Krispy Kreme products at all McDonald's US locations by 2026, was seen as a major opportunity to increase access and sales.

The delay reflects broader economic challenges facing the fast-food industry, with Krispy Kreme pulling its full-year outlook due to economic uncertainty. Similar issues have affected other major chains, as seen by McDonald’s reported 3.6% drop in same-store sales in the first quarter, marking the biggest decline since the COVID-19 pandemic began. The slowdown is attributed to inflation and a weak economic outlook impacting consumer spending habits. This partnership was intended to boost Krispy Kreme’s Delivered Fresh Daily channel, but the current economic climate is causing both companies to revisit their strategic approach before making further commitments.

Partnership Economic Impact Mc Donald's Krispy Kreme Fast Food Industry Josh Charlesworth Doughnuts

Story submitted by Fairstory

RATING

7.0

Fair Story

Consider it well-founded

The article provides a largely accurate and clear account of Krispy Kreme's decision to pause its doughnut rollout in McDonald's locations, supported by statements from Krispy Kreme's CEO and contextual economic data. While it is timely and relevant, its focus on Krispy Kreme's perspective limits the breadth of viewpoints. The reliance on a single source and lack of detailed financial data slightly detract from its credibility. Overall, the article effectively informs readers about a significant business development, with room for deeper analysis and additional perspectives.

Accuracy

The story is largely accurate based on the information available from credible sources. It correctly reports that Krispy Kreme has paused its planned rollout of selling doughnuts in McDonald's locations due to a need to reassess the business model for profitability. The figures regarding the number of McDonald's locations currently selling Krispy Kreme doughnuts and the timeline for expansion are consistent with reported data. However, specific sales figures and detailed financial impacts are not provided, which would enhance accuracy. The mention of broader economic factors affecting fast-food sales is accurate but could benefit from more detailed data to support the claim.

Balance

The article provides a balanced perspective by including statements from Krispy Kreme's CEO and contextual economic factors impacting the decision. However, it primarily focuses on Krispy Kreme's viewpoint, with less emphasis on McDonald's stance or consumer feedback. Including perspectives from McDonald's executives or market analysts could provide a more comprehensive view of the partnership's challenges.

Clarity

The article is clear and well-structured, with a logical flow of information. It effectively communicates the key points and rationale behind Krispy Kreme's decision. The use of quotes and specific timelines enhances understanding. However, more detailed explanations of the economic factors mentioned could improve clarity further.

Source quality

The article cites a contribution from FOX Business’ Aislinn Murphy, indicating a reliance on a professional news source. However, it lacks direct quotes from McDonald's representatives or independent market analysts, which would enhance the credibility and depth of the reporting. The reliance on a single source limits the diversity of perspectives and depth of analysis.

Transparency

The article is transparent in its reporting of Krispy Kreme's decision to pause the rollout and the economic factors involved. However, it does not provide detailed methodology or data sources for the economic claims, such as the decline in McDonald's US same-store sales. Greater transparency in the basis for these claims would improve the article's credibility.