MCD - Are Doughnuts the Answer to McDonald's Traffic Problems?
2024-04-12 04:30:00 ET
McDonald's (NYSE: MCD) has a problem that it thinks fresh-baked doughnuts might help solve. The burger giant just announced an expanded partnership that will bring Krispy Kreme 's sweet treats into all of its U.S. locations by late 2026.
It's a huge deal for the doughnut baker, which will soon have access to an extra 14,000 points of sale packed with hungry consumers. It's no surprise that Krispy Kreme's stock shot higher in late March on the expectation that it will sell many more of its glazed and stuffed confections thanks to this deal.
But what does McDonald's get out of the bargain besides some sweet additions to its dessert menu and a potential logistics headache? The short answer is the fast-food giant is hoping to boost its customer traffic, which recently shrank.
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Are Doughnuts the Answer to McDonald's Traffic Problems?