The North Carolina-based doughnut and coffee chain commenced a partnership with McDonald’s in October 2024 and expects its doughnuts to be sold across 2,000 of the fast-food giant’s US restaurants by the end of the year
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Krispy Kreme’s US revenues fell 12% to $228.4m during the third quarter | Photo credit: Ben Dutton
Krispy Kreme has posted lower third quarter earnings after selling a majority stake in its Insomnia Cookies business in July 2024.
The doughnut and coffee retailer reported a 7% year-on-year fall in global revenues to $379.9m during the three months ended 30 September 2024 – 13% lower than the previous quarter.
In a press release, Krispy Kreme attributed lower revenues to the $127.4m majority stake sale of its Insomnia Cookies business to private investment firms Verlinvest and Mistral Equity Partners. The business also highlighted ‘consumer softness’ in US and UK retail channels as contributing to the decline.
Krispy Kreme’s US revenues fell 12% to $228.4m during the period but are forecast to improve in the fourth quarter following the expansion of a doughnut distribution deal with fast-food giant McDonald’s.
The partnership, which commenced at McDonald’s restaurants in Chicago in October 2024, is set to expand to nearly 2,000 outlets by the end of 2024 before rapidly scaling to 12,000 of McDonald’s 13,500 US sites by 2027.
“Consumers ask us every day, ‘When can you bring Krispy Kreme to my town?’ – hence our strategy of making our fresh doughnuts more available around the world. The successful start of our nationwide US rollout at McDonald’s is a major milestone on this journey,” said Josh Charlesworth, CEO, Krispy Kreme.
Krispy Kreme’s international sales increased 3.7% year-on-year in the third quarter to $130.7m. In a press release, Krispy Kreme said strong sales in Canada, Japan and Australia offset an ‘underperformance’ in the UK, with outlet growth in France, Turkey and Ecuador also lifting international segment sales.
Founded in 1937, Krispy Kreme has over 2,000 stores and a further 13,700 global points of access – retail channels where its products can be purchased – across 39 markets globally. The JAB Holding-backed business has signed agreements to launch in Brazil, Germany and Spain in 2025.