One of America's most well-known doughnut chains is preparing to close another 14 outlets next year, just a few weeks after announcing a unique partnership with fast-food titan McDonald's.
No two words are more synonymous with flaky, light sweetness than Krispy Kreme, and overall, the donut business had a successful year in 2022.
Krispy Kreme's net revenue increased by 10.1% year over year to $377.5 million in the third quarter of this year. The doughnut brand's total net sales for this year is $1.52 billion.
In spite of a challenging macro environment, we experienced positive organic growth in every country, according to Krispy Kreme President and CEO Mike Tattersfield, during a recent results call.
On top of all that, this month Krispy Kreme revealed intentions to begin testing the sale of its donuts at a few McDonald's outlets in Kentucky and Indiana.
McDonald's rarely collaborates with other restaurant chains or food brands, so the partnership is definitely a plus for Krispy Kreme.
Curiously, the donut company has also secretly disclosed intentions to close further outlets in the midst of all this wonderful news. Eight Krispy Kreme outlets were previously closed earlier this year due to their inability to remain viable.
The doughnut chain has already identified a further 12 stores that will close soon, and it is currently working to close two more underperforming locations.
eight stores were closed during the third quarter. In addition, we found another 12 stores that we will close in the upcoming months. These 20 locations, in our opinion, make up the vast majority of possible closures.
The business concept comprises running bigger sites with donut production facilities called "hubs" that ship out donuts to smaller stores called "spokes" in order to maximize doughnut freshness.
"Obviously, this is a tiny test to work with a worldwide corporation, but we're excited about the future," says Krispy Kreme about its new cooperation with McDonald's.