Krispy Kreme Announces Massive Expansion Plans

Krispy Kreme Announces Massive Expansion Plans

Krispy Kreme fans, rejoice! The chain just announced expansion plans that will bring their delicious doughnuts to thousands of additional stores across America. And those stores are primarily McDonald's restaurants.

In the company's first-quarter earnings call, Krispy Kreme CEO Josh Charlesworth announced the exciting news for the first time.

"In the U.S., we expect to add 15,000 points of access by the end of 2026," Charlesworth said. "We're accelerating into more grocers and convenience stores. We're excited about our national rollout with McDonald's, which is expected to add more than 12,000 new points of access alone."

That's a lot of glazed, filled, and festive doughnuts rolling out.

Earlier this year, McDonald's shared the news of the nationwide rollout of its partnership with the doughnut giant, which started as a test in 2022. The fast-food chain carries three types of KK doughnuts at its McCafe locations: a classic glazed doughnut, the chocolate iced doughnut covered with sprinkles, and the chocolate iced kreme-filled doughnut. They're available individually or in a six-piece variety pack.

box of krispy kreme doughnuts above three doughnuts

And already, the expansion is paying off. Through retail partnerships and new Krispy Kreme stores, the brand grew the number of "access points" (places where its items are sold) by 19.4% in the first three months of 2024.

"Our strategy of making fresh Krispy Kreme doughnuts more available globally is providing impressive results," said Charlesworth. "We are modernizing how we make and move doughnuts to ensure high quality, profitable growth."

With $442.7 million in net revenue—an annual growth of 5.7%—Krispy Kreme is certainly seeing financial success with its expansions. And with the doughnuts increasingly available across the nation, the company can expect to garner even more new customers. The sweet treats will be available at a total of 33,000 stores and restaurants across America by 2026.

"We expect growth to be driven by a combination of both existing and new customers as well as new market expansion," Charlesworth said. "For example, our nationwide rollout to McDonald's in the U.S. gives us the opportunity to add distribution at other major customers such as Walmart, which still only lists us in about 25% of their stores, and Target with whom we have already agreed to expand our presence."

Krispy Kreme fans overseas may also be happy to learn that in May, the Charlotte, N.C.-based dessert shop announced its first expansion into Germany. Following a 2023 European expansion in Paris (a high-profile opening in a former Alain Ducasse restaurant), Krispy Kreme will be making waves in another trendy city: Berlin.

Read the original article on Eat This, Not That!