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Krispy Kreme Pauses Its McDonald's Rollout
Weak per-store demand pushed Krispy Kreme to halt new McDonald's locations, a reminder that distribution volume means little without working unit economics.
Krispy Kreme's Franchisees Now Ring Up 42% of Sales
Up from about 25% last year, the share keeps climbing as the doughnut chain refranchises markets and signs a 120-shop development deal for Pakistan.
Franchisees generated about 42% of Krispy Kreme's systemwide sales in the third quarter, up from roughly 25% in fiscal 2025, the company said Nov. 5. Its target is about 50% beginning in fiscal 2027.
The shift comes from selling company markets. Krispy Kreme refranchised Japan and its western U.S. joint venture in March and is pursuing at least one more international deal. After the quarter it signed Gray Mackenzie Restaurants to develop 120 shops in Pakistan over five years, on top of a 33-shop New York City agreement with an existing franchisee, Franchise Herald reported. Net revenue fell 12.4% to $328.8 million as refranchised sales left the books.
It is the mirror image of Dine Brands' quarter, where revenue grew by buying franchisee restaurants.
Priya Shah
Senior Reporter
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