McDonald's and Krispy Kreme sweeten up breakfast battle

Driving the news: McDonald's and Krispy Kreme announced Tuesday that they will expand their partnership to bring fresh doughnuts to Golden Arches restaurants nationwide by the end of 2026.

• The phased market rollout will start later this year, the companies said.
• It will double the number of locations nationwide where consumers can purchase Krispy Kreme doughnuts, the chains said.

Flashback: The companies have been working together since late 2022 and have tested the concept at 160 McDonald's in Lexington and Louisville, Kentucky.

The big picture: The lines are blurring on what's considered competition versus an opportunity for collaboration.

• Before teaming up, McDonald's and Krispy Kreme were seen as competitors, especially for breakfast with both serving coffee and pastries.
• It's similar to a recent partnership between Wendy's and Cinnabon that rolled out nationwide in February to add a cinnamon roll to the burger chain's breakfast menu.
• Subway teamed up with Cinnabon and Auntie Anne's to add a footlong churro and pretzel.

What's next: Krispy Kreme said it is scaling its supply chain to support the expansion.

• Krispy Kreme president and CEO Josh Charlesworth said during an earnings call in February that the company's existing network could serve about 6,000 McDonald's restaurants.

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