Krispy Kreme Halts McDonald's Rollout, Suspends Dividend, Stock Down 64.8% YTD After Q1 Loss Quadruples

12 posts • GPT (4.1)

Updated May 9, 2025, 12:43 AM

Krispy Kreme has paused the nationwide rollout of its doughnuts at McDonald's restaurants in the United States after demand fell below expectations following the initial marketing launch of the partnership. The company is reassessing the deployment schedule with McDonald's to achieve a profitable business model and does not expect to launch in any additional restaurants in the second quarter of 2025. As of March 30, 2025, Krispy Kreme doughnuts were available at over 2,400 McDonald's locations, mainly in Indiana and Kentucky. The partnership, announced in March 2024, aimed for nationwide availability by the end of 2026, with three doughnut varieties: Original Glazed, Chocolate Iced with Sprinkles, and Chocolate Iced Kreme Filled. Krispy Kreme reported a net revenue decline of $59.4 million (20.1%), primarily due to a $64.3 million reduction from the sale of a majority stake in Insomnia Cookies. The company missed first-quarter revenue targets, withdrew full-year guidance, and suspended its quarterly dividend, a move expected to save $6 million per quarter. The stock fell to a record low, down 64.8% year-to-date, as much as 30% on the day of the announcement, and 73% over the past year. The company also reported that its first-quarter loss quadrupled. Krispy Kreme stated that sales were below expectations and that no new McDonald's locations will be added in the second quarter of 2025. Despite these setbacks, the company continues to believe in the long-term opportunity for growth through its partnership with McDonald's.

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#Krispy Kreme #United States #Indiana #Kentucky #Original Glazed #Chocolate Iced with Sprinkles #Chocolate Iced Kreme Filled #Insomnia Cookies

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Barbarian Capital

@BarbarianCap

Funko Pulls Outlook as Loss Widens, Sales Fall $FNKO https://t.co/JenG1GZkDr

Journal Sentinel

@journalsentinel

Krispy Kreme 'reassessing' doughnut rollout at McDonald's amidst economic uncertainty https://t.co/pIKFkMLuct

Paul Cerro

@paulcerro

This was the first cut of a thousand cuts for Krispy Kreme $DNUT Should have shorted this obviously terrible idea Not sure why I didn't tbh https://t.co/LjesQHvcQ8 https://t.co/StMzl67wiA