(Reuters) – Krispy Kreme shares rose 23% in premarket trading on Tuesday after the company and McDonald’s (NYSE:) said they plan to bring Krispy Kreme donuts to the fast food giant’s U.S. restaurants by the end of 2026.
The companies said the phased rollout of the program will begin in the second half of 2024.
Krispy Kreme aims to open its retail outlets in at least 75,000 locations such as quick-service restaurants and grocery stores around the world using a hub-and-spoke model.
In February, the company said it ended 2023 with 2,300 more access points than in 2022.
The partnership comes as McDonald’s grapples with weak overseas demand for its restaurants following boycott campaigns against the burger giant in some international markets due to the conflict between Israel and Hamas, as well as tough macroeconomic conditions in China.
The companies tested the program at 160 McDonald’s restaurants in Lexington and Louisville, Kentucky, in a partnership that began in October 2022.
McDonald’s has about 14,000 stores in the U.S. and the company said in December it plans to open about 10,000 restaurants worldwide by 2027.