BREAKINGVIEWS-McDonut is a happy meal without M&A mess

Reuters03-27

(The author is a Reuters Breakingviews columnist. The opinions expressed are her own.)

By Jennifer Saba

NEW YORK, March 26 (Reuters Breakingviews) - Krispy Kreme will sell donuts at McDonald’s, sending shares in the pastry maker up 25%. That cuts costs to build stores, akin to synergies, while the $200 bln burger chain takes on little risk. In a world with high rates and harsh trustbusters, it’s a smart twist on dealmaking.

Full view will be published shortly.

Follow @jennifersaba on X

CONTEXT NEWS

McDonald’s and Krispy Kreme on March 26 announced a partnership where the burger chain will sell donuts at its U.S. based restaurants.

Krispy Kreme will deliver three kinds of pastries to McDonald’s stores daily. Shares of Krispy Kreme rose 25% in morning trade.

(Editing by Lauren Silva Laughlin and Sharon Lam)

((For previous columns by the author, Reuters customers can click on jennifer.saba@thomsonreuters.com; Reuters Messaging: jennifer.saba.thomsonreuters.com@reuters.net))

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

Comments

We need your insight to fill this gap
Leave a comment