The Great Doughnut Parade by Rebecca Bond

From chapters.ca:
Fanciful, elegant paintings and cheerful cumulative rhymes combine to create a classic, timeless read- aloud. Just where is small Billy going? Why does he have a doughnut tied to his belt? Does he know he is being followed by, first, a hen (with a cluck, cluck, cluck), then a cat (all quiet and slinky), and, farther down Main Street, a band...and firemen? Then sign painters...brick layers...even cloud catchers! Author/illustrator Rebecca Bond reveals the truly marvelous things that can happen when a doughnut is tied up with string.