02:38 PM EDT, 06/24/2025 (MT Newswires) -- Krispy Kreme (DNUT) and McDonald's (MCD) decision to end a partnership to sell donuts at the fast-food chain's stores was "largely expected," as the initiative was a "money losing one" for the donut company while being a "promising" one for McDonald's, Truist said in a Tuesday report, based on commentary from the companies' management teams.

The 15-month trial started with over 100 stores in Kentucky and expanded to more than 3,000 McDonald's stores, including Chicago and New York City, analysts said, adding that plans were to expand to 12,000 McDonald's locations by the end of 2026.

Truist analysts said they believe the companies' decision to expand via a national rollout "was a mistake" as operating costs, including costs associated with logistics, manufacturing, and distribution can "vary dramatically" between states.

The brokerage reiterated a hold rating on Krispy Kreme.