Krispy Kreme shares rise 13% amid expansion talks with Walmart, Target and McDonald’s

Krispy Kreme shares rose over 13% after the company announced expansion talks with Walmart, Target and McDonald’s. The doughnut chain is looking to significantly increase its market reach by opening more stores across the country.

Krispy Kreme seeks nationwide expansion with Walmart, Target and McDonald’s as shares rise 13%

Krispy Kreme announced plans to potentially expand its presence in Walmart stores across the country, part of its broader growth strategy that already includes partnerships with Target and McDonald’s.

On August 8, Krispy Kreme’s market capitalization saw a significant increase, with the stock rising by over 13%. This remarkable growth was fueled by solid financial results and the company’s relentless expansion efforts.

Krispy Kreme’s ambitious expansion plans include a possible nationwide presence in Walmart stores. The company’s doughnuts are available in 25% of Walmart stores. CEO Josh Charlesworth’s ongoing discussions with Walmart aim to expand this partnership nationwide, which could significantly increase Krispy Kreme’s market reach.

In addition to Walmart, Krispy Kreme is also in talks with Target to further expand its reach. This expansion is in line with Krispy Kreme’s strategy to manufacture and distribute doughnuts that are sold in thousands of grocery stores, convenience stores and restaurants around the world. The company sells doughnuts through 8,000 access points in the US, but wants to significantly increase that number.

Critical to this expansion are Krispy Kreme’s “hubs,” the traditional stores where doughnuts are made and then delivered daily to kiosks, called DFD doors, in retail stores. A nationwide partnership with Walmart would be a significant milestone for Krispy Kreme, as Walmart accounts for about 25% of grocery sales in the U.S.

Krispy Kreme expands partnership with McDonald’s to 12,000 locations and promotes nationwide growth plans

Krispy Kreme is also leveraging its partnership with McDonald’s to support this growth. As Restaurant Business Magazine reported, the company is testing the use of McDonald’s locations as additional doughnut destinations and plans to expand this partnership to over 12,000 McDonald’s locations by the end of 2026. This expansion, along with new partnerships with retailers like Walmart and Target, could result in Krispy Kreme products being available in nearly 23,000 locations across the U.S. by 2026.

In addition, Krispy Kreme recently sold a majority stake in Insomnia Cookies, providing the financial means to open additional stores to support its distribution network.

Charlesworth confirmed that the partnership with McDonald’s is progressing well. By the end of the year, Krispy Kreme doughnuts will be available in over 1,000 McDonald’s restaurants, primarily in the Midwest.

Krispy Kreme’s growth is aided by its ability to generate buzz through marketing initiatives. The company’s Southern Sweets Doughnut Collection, launched in May and which included the Dolly Parton-inspired Dolly Dazzler doughnut, contributed to 27 billion media impressions. These specialty doughnuts and a relaunched loyalty program contributed to 16% organic sales growth and a 22% increase in digital sales.