Krispy Kreme is delaying a rollout of its doughnuts at McDonald’s locations after the company’s first quarter revenue declined 15%.

The company Thursday said in its earnings report that the company is reassessing the deployment schedule with McDonald’s while it works to “achieve a profitable business model for all parties.”

As a result, the company is also withdrawing its full year outlook.

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 continues to believe in the long-term opportunity of profitable growth through the U.S. nationwide expansion including McDonald’s,” it said in a statement.

Krispy Kreme said its revenue decline was due in part to a roughly $64 million reduction associated with the divestiture of a majority stake in Insomnia Cookies last year.

Krispy Kreme began selling its donuts at McDonald’s in March 2024 and had anticipated selling them in all locations by the end of next year.