Krispy Kreme Stock Drops as McDonald's Doughnut Deal Paused
Krispy Kreme saw its stock price fall sharply on Thursday after announcing a pause in its doughnut rollout with McDonald's. The company stated it is re-evaluating the partnership. This decision led Krispy Kreme to withdraw its financial forecast for the year. Economic uncertainty was cited as a contributing factor to the reassessment.
Krispy Kreme's stock experienced a significant drop of 24% on Thursday morning following the announcement that the doughnut chain is pausing its planned expansion with McDonald's. The company indicated a 'reassessment' of the partnership, raising concerns among investors. This decision prompted Krispy Kreme to pull its full-year financial outlook, citing 'softness' in the current economic climate as a key reason. The pause introduces uncertainty about the future of the collaboration and its potential impact on Krispy Kreme's revenue streams. The company has not yet provided a revised timeline for the McDonald's rollout or a new financial forecast.
Source: Read the original article at NBC