Fast-food chain McDonald's (MCD) plans to expand its national partnership with Krispy Kreme (DNUT), hoping to serve the latter's signature donuts at all McDonald's locations by 2026.

Placer.ai Head of Analytical Research RJ Hottovy details how this partnership will help drive more customer traffic and increase menu value across McDonald's franchise locations.

"This is an interesting deal for them... This could be one of many things, and it helps them not only recapture but retain a lot of the breakfast traffic that they already command so much of," Hottovy tells Yahoo Finance.

For more expert insight and the latest market action, click here to watch this full episode of Yahoo Finance Live.

Editor's note: This article was written by Luke Carberry Mogan.

Video Transcript

JOSH LIPTON: All right. We move on. McDonald's and Krispy Kreme announcing a sweet deal today. Get it, sweet deal.

AKIKO FUJITA: I knew there was a pun in there somewhere.

JOSH LIPTON: Expanding their partnership. The donut chain began selling at some McDonald's locations in 2022. But now, the breakfast sweets will be rolling out nationwide in 2026. The fast food brand hope it will help further unlock further breakfast, foot traffic, and breakfast menu revenue.

Let's bring in RJ Hottovy, Head of Analytical Research RJ, it's always good to have you here. I guess, first of all, you know McDonald's very well, RJ. Just walk us through what you made of the news.

RJ HOTLOVY: Hey, Josh Thanks for having me. Yeah, I think it's interesting for McDonald's. You know, I think what we've seen in the retail and restaurant space, really the last year or so, is these unique partnerships really driving a lot of traffic, whether it's McDonald's celebrity orders or other things like that. And this might be the next extension of that.

I think we're seeing those chains that really are coming up with new menu innovation, new creativity, and even something as simple as Krispy Kreme donut. That's something unique, and gets people talking about it. That should drive traffic, potentially an average ticket higher.

So I think this is an interesting deal for them. Yeah, I think that this could be, you know, one of many things. And it helps them not only recapture, but retain a lot of the breakfast daypart traffic that they already command so much of.

AKIKO FUJITA: Yeah. RJ, I mean, how big of a bump are they likely to get on something like this? It is-- as you point out, it's about keeping the customer sort of in front with the menu innovations. I mean, this is just the very latest here. When you think about what McDonald's offerings are right now, I mean, how significant is this?