Krispy Kreme, Inc. (NASDAQ:DNUT) shares dropped as much as 7% before recovering slightly to close down 4% on Tuesday, following the announcement that the doughnut company and McDonald’s USA (NYSE:MCD) will end their partnership effective July 2,

Under the partnership, announced in March last year, McDonald's planned to sell Krispy Kreme's donuts as part of its breakfast menu at more than 14,000 stores in the U.S. But so far, the donuts were available at only 2,400 McDonald's restaurants, according to the companies.

Krispy Kreme and McDonald’s jointly decided to end their partnership as of July 2, as the doughnut maker says the costs were unsustainable.