Doughnut chain Krispy Kreme and McDonald’s have mutually agreed to end their partnership, effective July 2, following a period of evaluation. 

According to the two companies, Krispy Kreme made up a small part of McDonald’s breakfast offerings, which the company prioritizes as a key to growth. 

“Our two companies partnered very closely, each supporting execution, marketing, and training, delivering a great consumer experience,” 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.” 

The deal, signed in March last year, brought Krispy Kreme doughnuts to around 2400 McDonald’s locations and was expected to be available nationwide by the end of next year. 

“We had strong collaboration with Krispy Kreme and they delivered a great, high-quality product for us,” said Alyssa Buetikofer, McDonald’s USA’s chief marketing and customer experience officer.

“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.” 

Krispy Kreme will continue to focus on its core growth strategy: Expanding through high-volume retail distribution points and pursuing capital-light international franchise opportunities.