CHARLOTTE, NC. — With plans underway to sell its donuts in more McDonald’s restaurants, Krispy Kreme, Inc. has raised a long-term goal.
“Following our recent announcement to provide fresh donuts daily at McDonald's restaurants in the US, we have raised our long-term global points-of-access goal from 75,000 to 100,000 to improve the quick-service restaurant opportunity,” said Joshua Charlesworth, president and chief executive officer, in a May 9 earnings call to discuss first-quarter financial results.
Krispy Kreme defines points of access as all locations at which fresh donuts or cookies may be purchased. By the end of 2026, McDonald’s may account for more than 12,000 new points of access in the United States, Charlesworth said.
“We are partnering with McDonald's on a phased rollout through to the end of 2026, which we expect to begin before the end of this year,” he said. “We anticipate nearly tripling our US points of access over the next three years from 7,775 today to more than 22,000 by the end of 2026. Much of the national rollout can happen using existing capacity, but we will also invest in our business to increase production hubs with spokes.”
Krispy Kreme defines hubs as locations where fresh donuts are produced and processed for sale at any point of access. Krispy Kreme in the United States expects to add about 30 new hubs. Currently, 154 hubs with spokes in the United States serve on average 47 points of access per hub.
Internationally, Krispy Kreme is expanding in Germany, France and Brazil and could reach 33,000 global points of access by the end of 2026, Charlesworth said.
In the first quarter ended March 31, Krispy Kreme suffered a loss attributable to the company of $8.5 million, which compared with a loss of $301,000 in the previous year’s quarter.
In this year’s quarter, costs were associated with global transformation, exploring alternatives for the Insomnia Cookie business and preparing for the McDonald’s US expansion. Krispy Kreme is in an investment phase with its McDonald’s plans and incurring startup costs; selling, general and administrative expenses (SG&A); and operating expenses (OpEx), said Jeremiah Ashukian, chief financial officer.
Revenue increased 5.7% to $443 million from $419 million. Digital sales in the quarter rose 340 basis points to become 23% of overall retail sales.
“First-quarter organic revenue growth exceeded expectations of 6.7% year-over-year with strong consumer demand and increased sales through digital channels fueling the results,” Charlesworth said. “We’re increasing the pace of expansion as we make our fresh donuts more available around the world. In Q1, we grew our points of access for Krispy Kreme fresh donuts by 19.4% year-over-year.”
