Krispy Kreme’s Stock Surges Amid Major Partnerships and New Offerings.
Krispy Kreme’s stock jumped over 13% on Thursday, driven by strong financial results and strategic expansions. The doughnut chain’s rise is linked to notable partnerships with Walmart, McDonald’s, and promotional efforts featuring Dolly Parton.
Krispy Kreme executives announced plans to enhance their relationship with Walmart, aiming to expand the availability of its doughnuts nationwide. Currently, Krispy Kreme products are available in 25% of Walmart locations, but the company wants to increase that presence. CEO Josh Charlesworth stated, “We’re in discussions with Walmart about how hubs are available to produce doughnuts in more and more markets.” This expansion would significantly boost Krispy Kreme’s distribution, as Walmart accounts for about 25% of grocery sales in the U.S.
In addition to Walmart, Krispy Kreme is also exploring partnerships with Target. The company operates approximately 8,000 distribution points in the U.S. and aims to significantly grow this number by establishing more production hubs.
Krispy Kreme’s collaboration with McDonald’s is also crucial to its expansion strategy. The two companies are testing the use of McDonald’s locations as doughnut distribution points. Charlesworth mentioned that they plan to have more than 12,000 McDonald’s locations offering Krispy Kreme products by the end of 2026. This initiative, along with potential agreements with retailers like Walmart and Target, could lead to nearly 23,000 locations selling Krispy Kreme doughnuts across the country.
The company’s recent sale of a majority stake in Insomnia Cookies provides additional financial resources for establishing new production hubs. Charlesworth noted that the partnership with McDonald’s is progressing well, with expectations to serve over 1,000 restaurants, primarily in the Midwest, by year-end.
Krispy Kreme has also leveraged various promotional events to boost sales. The company generated over 27 billion media impressions through campaigns tied to notable occasions, such as the solar eclipse. Additionally, the Southern Sweets Doughnut Collection, launched in May, features four specialty doughnuts inspired by Southern flavors, including a Banana Puddin’ Pie doughnut and a Dolly Dazzler doughnut, which has strawberry icing and glitter sprinkles.
These innovative products, along with a revitalized loyalty program, have contributed to a 16% increase in organic revenue and a 22% rise in digital sales.
Krispy Kreme’s strategic partnerships and creative marketing efforts position the company for continued growth and a stronger market presence.