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yesterday

Krispy Kreme Halts McDonald’s Rollout, Suspends Dividend Amid Financial Challenges

The doughnut chain pauses its expansion to 2,400 McDonald’s locations, pulls full-year guidance, and shifts focus to debt reduction and profitability.

CHICAGO, ILLINOIS - MAY 05: Doughnuts are sold at a Krispy Kreme store on May 05, 2021 in Chicago, Illinois. The doughnut chain reported yesterday that it plans to take the company public again. The company was taken public in 2000 but struggled before being acquired by JAB Holding Company in 2016. (Photo Illustration by Scott Olson/Getty Images)
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Overview

  • Krispy Kreme has paused its partnership expansion with McDonald’s, originally intended to reach all 13,000 U.S. locations by 2026, to reassess profitability.
  • The company suspended its quarterly dividend, saving approximately $6 million per quarter, to improve financial flexibility.
  • Weaker-than-expected sales at McDonald’s locations and broader economic softness prompted the decision to halt the rollout.
  • Krispy Kreme pulled its 2025 financial outlook, citing macroeconomic uncertainty and a need to focus on sustainable growth strategies.
  • Shares of Krispy Kreme dropped 24% following these announcements, extending a yearlong decline of over 65%.