Krispy Kreme's shares are now soaring after the American multinational doughnut company announced that it is partnering with McDonald's.

But, Krispy Kreme is not the only one that will benefit from their collaboration. Here's why this new partnership is a big deal for both McDonald's and Krispy Kreme.

Krispy Kreme's Shares Soar

According to Investopedia's latest report, Krispy Kreme's shares drastically increased by 18% in early trading on Tuesday, Mar. 26, after its collaboration with the fast-food giant was announced.

Meanwhile, McDonald's shares were flat. Although this is the case, the American fast-food firm is still expected to greatly benefit from it.

McDonald's USA Chief Marketing and Customer Experience Officer Tariq Hassan said that the partnership will give McDonald's a chance to open new business opportunities in the breakfast category, as well as throughout the day.

The partnership will also help Krispy Kreme in other ways. For example, the doughnut company has fewer stores compared to McDonald's. With this partnership, Krispy Kreme could increase its scope.

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Krispy Kreme-McDonald's Partnership

CNN Business reported that McDonald's already started offering Krispy Kreme doughnuts as part of their pilot program at 160 restaurants in Kentucky.

The partnership is expected to completely roll out across the United States at participating restaurants by the end of 2026. For many customers, the testing period is pretty long.

However, truist analysts said that the long testing period is essential for McDonald's and Krispy Kreme since it could help them reduce risk.

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