MCD - McDonald's double downs on partnership with Krispy Kreme

2024-03-26 06:51:02 ET

McDonald’s Corp (NYSE: MCD) says Krispy Kreme Inc (NASDAQ: DNUT) doughnuts will be available at its nationwide stores by the end of 2026. Shares of the fast food chain are marginally up at writing.

Krispy Kreme has to expand its distribution

The $2.10 billion company based out of Charlotte, North Carolina will start selling Krispy Kreme doughnuts at select stores in the back half of 2024.

But making them available nationwide will take another 31 months as it would require to more than double its distribution.

Josh Charlesworth – the chief executive of Krispy Kreme also confirmed today that his company is committed to expanding distribution to make its doughnuts available at grocery and convenience stores as well.

That means the overall efficiency and productivity of our distribution network will significantly improve over time, not just because of all those local deliveries.

McDonalds Corp to open a lot of new stores

Krispy Kreme will get to significantly expand its reach on the back of partnership considering the hamburger giant has about 13,500 locations in the U.S. and plans on opening another 900 by 2027.

Of those, CEO Charlesworth is convinced that “can service about 6,000 with our existing infrastructure”. Note that McDonald’s will be its exclusive fast-food partner in the United States for the duration of this agreement.

McDonalds and Krispy Kreme have been in a partnership for more than a year now.

The news arrives more than a month after the New York listed firm reported revenue for its fourth financial quarter that fell short of Street estimates.

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