McDonalds: Inking A Deal With Krispy Kreme To Boost Breakfast Business

The American eater can’t be stopped. Some of the best-performing stocks in history have come from the food and beverage sector, with McDonald’s Corp. (MCD) being one of the most prominent, highlights. Unsplash The burger giant was back in the news this week for a slightly different reason. It’s raising the stakes in the fast-food breakfast wars by becoming Krispy Kreme Inc.’s (DNUT) exclusive fast-food partner and serving its donuts at restaurants nationwide by the end of 2026.The slow ramp-up will begin in the second half of the year, allowing Krispy Kreme to double its distribution to ensure it can satisfy demand. McDonald’s Corp.  This is big news for Krispy Kreme, which currently uses a “hub and spoke” model to make its treats at production hubs and then deliver freshly made doughnuts every day to its retail partners, which range from grocery stores to gas stations.While Krispy Kreme delivered to roughly 6,800 third-party stores as of the end of last year, McDonald’s alone has roughly 13,500 US restaurants and is planning to open 900 more new locations over the next three years.The deal means that Krispy Kreme will have the backing it needs to invest heavily in its distribution network and drive profitable growth. As for McDonald’s, the addition of doughnuts will bolster its bakery and breakfast offerings as the fast-food space competes heavily for diners.DNUT shares surged 40% on the news, becoming the third-most added stock to users’ watchlists on Stocktwits when the news broke. Sentiment and message volume surged, showing retail’s excitement about the partnership and its long-term impact on the business.As for McDonald’s, the impact was a little less clear for investors. Shares were flat on the announcement day, with Stocktwits users bearish on the stock.More By This Author:CrossAmerica Partners: A Service Station Operator With A Hefty Dividend Yield
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