New strategies, investments reshaping the fresh donut category

KANSAS CITY — Product innovation took a bit of a backseat in the donut category during 2025 amid a flurry of partnerships, expansions and acquisitions.

Krispy Kreme Inc. stumbled when it it pulled the plug on a partnership with McDonald’s aimed at dramatically broadening the distribution of its donuts. Meanwhile, two acquisitions of donut companies by two equity firms signaled that interest in the category remains strong.

Failed partnership with McDonald’s aside, Charlotte, NC-based Krispy Kreme is now focused on driving profitable growth in the United States by expanding in high-traffic retail locations, such as Target, Costco, Sam’s Club, Kroger and Publix stores, said Joshua Charlesworth, president and chief executive officer.

“We are focused on strategic customers with high-volume and high-margin doors, ensuring that we have the right product variety, in the right amount, in the right place and at the right time,” Charlesworth said in reporting third-quarter earnings. “We continue to grow with strong existing customers. During the third quarter, more than 200 profitable doors were added with strategic partners, including Target, Costco, Sam’s Club, Kroger and Publix. In total, approximately 1,000 profitable doors have been added year-to-date, and these doors are delivering weekly sales well above the system average.”

As Krispy Kreme worked on rebounding from its McDonald’s exit and driving retail expansion, one of the oldest and largest continually operating, privately owned US donut brands took on new ownership in the hopes of fueling growth.

In July 2025, Beverly Hills, Calif.-based private equity firm Levine Leichtman Capital Partners (LLCP) acquired Shipley Do-Nuts from an affiliate of Austin, Texas-based private equity firm Peak Rock Capital, which first acquired the donut chain in 2021.

Houston-based Shipley Do-Nuts operates more than 375 stores across 14 states and is known for its donuts, coffee and kolaches. Earlier in July, Shipley Do-Nuts marked its 18th consecutive quarter of positive sales growth in the second quarter. The company expanded into two new states and opened 16 new stores in the first half of 2025 and was on track to open more than 40 new units by the end of 2025.

Flynn Dekker, CEO of Shipley Do-Nuts, said partnering with LLCP presents “an outstanding opportunity for Shipley to accelerate our growth and bring the world’s greatest donut to an even wider audience. Their extensive expertise in franchise food brands will be pivotal in driving future growth and supporting our franchisees, while preserving our commitment to fresh-made quality and our original recipes that have made our brand the icon it is today.”

Shipley Do-Nuts wasn’t the only donut company that changed hands in 2025. York, Pa.-based Maple Donuts Inc. was acquired by San Francisco-based private equity firm Swander Pace Capital in June 2025. Founded by the Burnside family in 1946, Maple Donuts produces a range of ready-to-sell and ready-to-finish donuts, including fresh and frozen donuts, donut holes, bismarcks and paczki.

“The Burnside family recognized the clear benefits that Swander Pace Capital’s resources and expertise can provide to help Maple Donuts continue its growth trajectory,” said Luke Burnside, executive vice president of sales at Maple Donuts. “Their deep understanding of the bakery industry, combined with their track record of working with family-owned businesses, makes them the ideal partner for our next chapter. We are excited to work with the Swander Pace Capital team to further expand our product offerings, enhance our production capabilities and extend our market capabilities while maintaining the high standards of quality that have defined Maple Donuts since its founding.”

Soon after the acquisition closed, Maple Donuts hired Greg Somerville as its new CEO. He previously was president and CEO of Savencia Cheese USA, part of Paris-based Savencia Fromage & Dairy. Somerville also held executive roles at Land O’Lakes, The Pillsbury Co., Purina Mills and Unilever.

“Greg’s appointment represents a strategic milestone in Maple Donuts’ evolution,” said Tyler Matlock, chairman of Maple Donuts and a managing director at Swander Pace Capital. “The Burnside family have been tremendous stewards of Maple Donuts, and we want to continue that legacy. His proven track record of scaling consumer platforms, driving operational excellence and building high-performing teams makes him the ideal leader to capitalize on the significant growth opportunities ahead for Maple Donuts.”