McDonald’s and Krispy Kreme said Tuesday that they’re ending their partnership on July 2, a little more than a year after it was announced. Krispy Kreme said demand for its doughnuts at McDonald’s wasn’t strong enough to recoup its costs.

Krispy Kreme and McDonald’s are ending their partnership on July 2 due to unsustainable costs. The rollout had reached 2,400 McDonald’s locations, with plans to roll out to all U.S. locations by the end of 2026.

McDonald's and Krispy Kreme are ending their partnership on July 2, just over a year after its announcement. The decision was mutual, as the business model proved unsustainable for Krispy Kreme. Despite McDonald's satisfaction with the collaboration and product quality,