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Although Krispy Kreme raised its prices last September with positive results in terms of sales, now, it plans another increase in its products in this fourth quarter of the year.
According to a public report from the company, its third-quarter revenue increased 18%, driven by higher prices for its fresh donuts. what helped the chain to offset rising commodity and labor costs.
According to a survey of Refinitiv analysts, net sales reached $ 342.8 million in the quarter, beating Wall Street expectations of $ 337.7 million.
Krispy Kreme’s third quarter results showed strong growth compared to 2019 and 2020, with the company’s total organic revenue growing 6.2% in the quarter and 14.3% on a two-year basis over 2019.
Mike Tattersfield, CEO of Krispy Kreme, said customers are willing to spend more on fresh donuts. In recent years, the company changed its business to delivery of fresh donuts every day in your stores generating greater roots in your customers.
Krispy Kreme has been able to set prices successfully, as consumers also buy the donuts. “Because we are a business of dozens, we have a lot more flexibility in how we set prices,” Tattersfield said.
″ We are not a high frequency brand. People are still going to have celebrations, so they tend to look at the business as ‘Yes, I would like to make sure we can have fresh Krispy Kreme donuts,’ ”added the manager.
The CEO did not hesitate to ensure that customers are also willing to pay up to 50% more for special donuts that are sold in the branches. Despite the fact that the firm had good sales, the reason for the coming increase was not explained, it was not said how much the percentage will rise.
The donut company had a slight loss on the stock market, corresponding to the third fiscal quarter ending October 3.
Compared to the same date in 2020, the net loss represented $ 5.7 million dollars, 4 cents per share. A year ago, the net loss was $ 14.9 million, or 12 cents per share.
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