Hashbrowns and hot doughnuts… a match made in drive-thru heaven. Krispy Kreme is teaming up with McDonald’s to bring its iconic glazed doughnuts to the Golden Arches. This month McD’s will start selling three Krispy flavors at nine locations. Krispy Kreme investors had a sweet tooth, boosting the stock yesterday by as much as 7%. For both chains it’s a rare move:
- McD’s usually doesn’t feature other foodies on its Mc-filled menu. It did partner with Beyond Meat to offer a McPlant burger, but some locations have pulled the option from menus as demand fizzles.
- Krispy Kreme uses its 245 shops to bake doughnuts for grocery stores and gas stations, but not restaurants. Teaming up with even a fraction of McD’s 13K+ locations could help it reach its goal of being in 10K locations.
Sweet ’n’ salty… From Wingstop to Taco Bell, fast-food chains are testing new items and promos to attract inflation-fatigued diners. In August, average menu prices were up 8% from last year, and McDonald’s says its customers with lower incomes are spending less at the burger chain. On the flip side: Krispy Kreme’s sales jumped nearly 8% last quarter as Americans kept shelling out for dollar-doughnut delights.
Part-time rivals can be full-time friends… McDonald’s and Krispy Kreme compete on breakfast, but they can complement each other in areas where they lack. Krispy doesn’t have the “anytime meal” appeal that McD’s has. Meanwhile, McDonald’s wants to see how name-brand sweets might enhance its popular McCafé options. If the collab is successful, we could see other fast-casual partnerships (think: Dunkin’ in KFC).