McDonald's Teams Up With Krispy Kreme In New Menu Testing

Have you ever really wanted a Krispy Kreme Inc (NYSE: DNUT) donut but been too far away from one of its locations to get one? McDonald’s Corp (NYSE: MCD) is teaming up with Krispy Kreme to sell donuts as part of a menu test. 

According to CNBC, nine McDonald's locations in Louisville, Kentucky, will sell Krispy Kreme donuts starting later this month. Krispy Kreme’s stock spiked higher by about 6% on the news, before giving up some gains. The stock was trading around $13.20 Tuesday afternoon. 

McDonald’s mostly sticks to the classics: fries, Big Macs and McFlurries. But, the fast-food giant has proven it is willing to experiment with new menu items. In the past few years, McDonald’s put out a revamped chicken sandwich to compete with Chick-fil-A and Popeyes. 

It’s possible McDonald’s is trying to supplement its current breakfast menu with sweet alternatives such as Krispy Kreme donuts. The donut maker also distributes and sells its donuts in various grocery chains such as Kroger Co (NYSE: KR) and the partnership with McDonald's could definitely help Krispy Kreme expand its reach.

What the McDonald’s, Krispy Kreme partnership does not help with is making McDonald’s menu healthier. Look, no one is going to mistake a McDonald’s for a Whole Foods, but the fast-food chain has taken measures to make its menu healthier throughout the past 20 years, including eliminating super-size portions and expanding fruit and vegetable choices. The Krispy Kreme donuts will certainly not add to McDonald’s nutritious offerings.

Photo: Steve Cukrov via Shutterstock