Krispy Kreme’s stock plummeted 25% on Thursday after the company announced a pause in its partnership expansion with McDonald’s. Initially unveiled last March, the plan aimed to bring Krispy Kreme products to all 13,500 U.S. McDonald’s locations by the end of 2026, sparking a 39% stock surge at the time. However, during its latest quarterly earnings report, Krispy Kreme stated it is reassessing the rollout and does not expect to launch additional restaurants in the second quarter. The stock closed at $3.26 per share, its lowest since going public in July 2021. The company reported a net loss of $33 million for the quarter ended March 30, citing the rapid capacity expansion required for the nationwide rollout as a factor weighing on profits. Krispy Kreme withdrew its full-year outlook due to macroeconomic softness and uncertainty regarding the McDonald’s deployment schedule. CEO Josh Charlesworth emphasized focusing on positive cash flow and capital-light international franchise growth.
— new from qz.com
