By Tomi Kilgore
Deal will double 'hotspots' for Krispy Kreme, starting later this year
Shares of Krispy Kreme Inc. soared on Tuesday after the donut seller announced an expanded partnership with McDonald's Corp., in which its donuts will begin to be available at the fast-food giant's restaurants across the United States. .
The launch of the partnership will begin in the second half of 2024 and Krispy Kreme donuts are expected to be available nationwide by the end of 2026.
Krispy Kreme (DNUT) shares soared 39.4% to $17.35, their highest point in more than two years, breaking the previous record gain of 14.1% in one day seen on August 19, 2021.
Shares of McDonald's (MCD) were unchanged.
"The number one request we get from consumers every day is, 'please bring Krispy Kreme to my city,'" said Krispy Kreme CEO Josh Charlesworth. "Partnering with McDonald's on a national scale will give our fans and donut lovers unprecedented daily access to fresh donuts and the joy that is Krispy Kreme."
The company said the partnership is expected to double "hotspots" for customers. It has been expanding its supply chain as it prepares for expansion.
As of the end of 2023, Krispy Kreme said it had 7,372 hotspots in the US, while McDonald's had more than 13,449 restaurants in the US.
The rally in Krispy Kreme stock has turned it positive for this year as it has now gained almost 15% in 2024, while McDonald's stock has lost around 5% and the S&P 500 SPX index has gained 9%. %.
-Tommy Kilgore
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03-26-24 1658ET
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