Krispy Kreme Loyalty Program Tops 17 Million Amid Digital Shift

Krispy Kreme is pivoting the business model of its doughnut shops.

In reporting its earnings Thursday (Feb. 26), the company said it is moving from owning and operating its own locations toward a “capital-light” strategy that leans heavily on third-party retailers and digital sales.

“Digital represented 22.5% of U.S. retail sales in the fourth quarter, reflecting strength across the Krispy Kreme app and website as well as through third-party delivery partnerships,” CEO Josh Charlesworth said during the company’s earnings call.

Meanwhile, the company’s loyalty system, launched a little less than two years ago, now has more than 17 million U.S. members, with Krispy Kreme using the platform to drive purchase frequency via targeted rewards.

As PYMNTS wrote this week, loyalty rewards programs are becoming a key lever for businesses as consumers cut back on discretionary spending. Research by PYMNTS Intelligence shows that enrollment in these programs rose to 48% of diners in 2025, up from 46% a year earlier, and weekly engagement climbed to 47%, versus 34% in 2023.

The research found that 93% of members check for deals before deciding where or what to eat, while loyalty influences decisions for 61% of delivery customers and 54% of quick service restaurant patrons.

“For restaurants navigating rising costs and unsettled consumer habits, the message from the data is direct,” PYMNTS wrote. “AI is no longer a side project. It is becoming the connective tissue between service, operations and customer trust, redefining what the restaurant experience means in a value-conscious economy.”

Shifting consumer behavior is also reflected in how Krispy Kreme distributes its products. The company has exited its partnership with McDonald’s and shuttered approximately 1,400 underperforming “fresh delivery doors,” choosing instead to focus on high-volume strategic partners like Walmart and Target.

The company said these closures contributed to a 3.9% dip in revenue for the quarter. Full year revenues were down 1.9%.

Charlesworth noted that the chain is operating with significant excess capacity, using its existing production hubs to supply these third-party locations without needing to build new infrastructure.

“We have the ability to reach thousands more locations without incremental capacity investment,” Charlesworth said.

Krispy Kreme is also applying technology to its back-end operations, transitioning its logistics to third-party providers to create more predictable costs and optimize delivery routes. By the end of 2025, 57% of its U.S. delivery network was outsourced, a move management expects to complete in 2026.