Baked goods behemoth, Krispy Kreme, will be doubling its distribution over the next two and a half years in order to make its goods available at McDonalds across the US.
The two companies have expanded the partnership that they first tested out in October 2022.
According to CNBC News, Krispy Kreme currently delivers its doughnuts to 6800 third-party stores. However, at a last tally at the end of last year, McDonald’s had around 13,500 restaurants in the US, but also has mooted opening a further 900 locations by 2027.
“We think we can service about 6,000 restaurants with our existing infrastructure, mostly doughnut shops, which have excess capacity,” Krispy Kreme CEO Josh Charlesworth told CNBC. This deal will see the company have to step up its production and distribution; but is also being seen as an opportunity to expand into stores, including grocery and convenience shops. However, McDonalds will be the company’s exclusive fast food partner.
Krispy Kreme’s share price buoyed on the news, which comes after a 20% drop in the past year.
