Shares of Krispy Kreme surged as much as 23% in premarket trade Tuesday after the company and McDonald’s said they plan to provide Krispy Kreme’s donuts across the fast-food giant’s U.S. restaurants by the end of 2026.

The companies said phased roll-out of the program will begin in the second half of 2024.

Krispy Kreme has been aiming to open its outlets in at least 75,000 points of access such as quick-service restaurants and grocery stores around the world through a hub-and-spoke model.

The company said in February that it ended 2023 with 2,300 more points of access than 2022.

The partnership comes at a time when McDonald’s has struggled with weak overseas demand at its restaurants as a result of boycott campaigns against the burger giant in some international markets in connection with the Israel-Hamas conflict, as well as tough macro economic conditions in China.

The companies had been testing the program in 160 McDonald’s restaurants in the Lexington and Louisville, Kentucky areas as part of the partnership that began in October 2022.

McDonald’s has about 14,000 stores in the United States, and has said in December that it plans to open about 10,000 restaurants globally by 2027.

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