Green’s Dictionary of Slang

(Aus./US teen) to make an automobile spin by pulling on the hand-brake. The vehicle in question is usu. stolen.

1971		Current Sl. VI 4: Donut, v. To spin a car around in a circle.
2007		G. Carins Diary of a Legionnaire 144: Ducs and Fino were donuting a 5 series BMW around the car park like they were Starsky and Hutch .