McDonald's Agrees to Sell Krispy Kreme Doughnuts in US Restaurants

Krispy Kreme doughnuts are coming to McDonald's across the U.S. It's the burger giant's latest effort to boost the business breakfast. Simone Foxman, is there all a Krispy Kreme at 3 a.m. in the morning? There's a thought, Simone. Yeah, that's a sugar rush. You know, it's also a sugar rush for Krispy Kreme investors is what the shares are doing today. We've seen them pretty much recoup all of their losses so far this year. This is the biggest rally in Krispy Kreme shares since the company IPO back in July 2021. We understand that there was a test of selling Krispy Kremes at McDonald's at in two cities in Kentucky, Louisville and Lexington at 160 restaurants. According to a statement announcing this deal this morning, the demand exceeded expectations. And so Krispy Kreme doughnuts will roll out in the second half of 2024 and end up in all McDonald's locations by the end of 2026. Part of the reason investors like this, though, according to the CEO of Krispy Kreme, this will double the points of access for people who want these Krispy Kreme doughnuts across the country. It had been having a bit of a tough year, too, because, as Citi put it, the outlook it put forward back in February was not so sweet with pressures from inflation and other things on its ingredients. I also saw a little bit of a slowdown in terms of expectations for what people wanted. But now it will be much wider availability of Krispy Kreme doughnuts. And that's clearly a positive for the stock this morning.