11:06 AM EDT, 06/24/2025 (MT Newswires) -- McDonald's (MCD) and Krispy Kreme (DNUT) said Tuesday that they will discontinue their collaboration as the doughnut maker struggled with turning a profit on the venture.

Under the collaboration, Krispy Kreme doughnuts became part of breakfast offerings at about 2,400 McDonald's restaurants in the US.

"Ultimately, efforts to bring our costs in line with unit demand were unsuccessful, making the partnership unsustainable for us," Krispy Kreme Chief Executive Josh Charlesworth said in a joint statement.

The company said last month that it was reassessing the partnership's deployment schedule as it worked to achieve a profitable business model.

Krispy Kreme said Tuesday that it will focus on "profitable US expansion" through high-volume retail locations and capital-light international franchise growth.

"We had strong collaboration with Krispy Kreme and they delivered a great, high-quality product for us, and while the partnership met our expectations for McDonald's and owner/operators, this needed to be a profitable business model for Krispy Kreme as well," said Alyssa Buetikofer, chief marketing and customer experience officer at McDonald's USA.

Shares of Krispy Kreme, which were down 1.2% intraday, have lost more than 70% of their value this year. McDonald's stock was nearly flat in Tuesday trading and is also little changed so far this year.

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