Our weekly focus includes Krispy Kreme Inc. (DNUT), a stock that recently saw significant market movement. Trading between a 52-week high of $17.84 and low of $11.52, DNUT most recently closed at $15.23, showing a slight decrease of -0.75%.
The major catalyst driving investor interest was the announcement on March 26th that Krispy Kreme donuts will be available in nearly all McDonald’s U.S. locations by the end of 2026. This news had an immediate and dramatic impact on the stock price, propelling DNUT up over 39% on the day – marking its strongest single-day performance ever.
This significant distribution expansion will roll out in phases, commencing in the second half of this year and is expected to take about two and a half years to fully implement. This timeline is necessary as Krispy Kreme must scale its production capacity to more than double its current sales volume to meet McDonald’s projected demand across their vast network. Under the terms of the agreement, McDonald’s will serve as Krispy Kreme’s exclusive fast-food partner in the United States for the duration of the partnership.
Market analysts largely view this collaboration as a rare and valuable opportunity for Krispy Kreme to substantially enlarge its business reach and distribution footprint. As of December 31st last year, Krispy Kreme had approximately 6,800 third-party sales points. Partnering with McDonald’s instantly adds an estimated 13,500 locations across the U.S. Moreover, McDonald’s itself plans to open an additional 900 new stores across the country by 2027, further expanding the potential market. This aligns well with Krispy Kreme’s ambitious long-term goal, which has been revised upward, now targeting exceeding 100,000 global sales points, a significant jump from their previous target of 75,000, building upon their current base of over 14,100 sales points in 39 countries.
The confidence in this nationwide rollout stems from a successful pilot program. This test began over eighteen months prior in just nine McDonald’s locations and later expanded to approximately 160 restaurants in the Louisville and Lexington areas of Kentucky. Krispy Kreme CEO Josh Charlesworth confirmed that customer demand for their donuts during this pilot phase significantly exceeded expectations of both partner companies, providing strong validation for the broader rollout.
Prior to this major announcement, DNUT shares had seen a decline, falling 20% over the past year, bringing its market capitalization to $2.11 billion. Based on data from Tipranks, analysts maintain a somewhat cautious outlook, with one ‘Buy’ rating and four ‘Hold’ ratings among the five analysts covering the stock, and an average one-year price target currently set at $15.00.
Riley Evans