Krispy Kreme stock plunged 24% on Thursday morning after the doughnut chain said it is “reassessing” its rollout with McDonald’s and pulled its full-year outlook in part due to economic “softness.”

Krispy Kreme does not expect to launch in any additional restaurants in the second quarter of 2025. The North Carolina-based company’s doughnuts are already available in about 2,400 McDonald’s locations.

Krispy Kreme’s partnership with McDonald’s to sell its doughnuts at all of the burger chain’s US restaurants didn’t turn out as sweet as it thought. The doughnut chain announced in its earnings release Thursday that it is “reassessing the deployment” of the rollout,