Start Preparing for Higher Krispy Kreme Prices Because of Inflation

One of the nation’s most famous donut shops, Krispy Kreme, is getting ready to increase its prices because of inflation.

The company’s prices will see a boost next month in an effort to protect margins from higher costs for key commodities that go into their products. This includes edible oils and sugar.

Krispy Kreme CEO Mike Tattersfield said to Yahoo! Finance Live that the price increases won’t be exorbitant.

“We are really disciplined on pricing. We are a dozens business, so we do always pay attention to an accessible price point. So when you think about the pricing that will happen on a dozen you won’t really see it that much,” explained Tattersfield.

Tattersfield said the cost for an individual donut will still be roughly $1.

“We do have pricing power, and we are really thoughtful,” Tattersfield noted.

The company only went public in July under the ticker symbol DNUT and has reported a solid second quarter.

Despite the pressure on the business, Krispy Kreme notched a solid second quarter — its first since going public in July.

Krispy Kreme reported that organic sales saw a jump of 22.5% from a year ago. Adjusted EBITDA (earnings before interest, taxes, depreciation and amortization) soared 77.8% year-over-year.
Net sales were $349.2 million compared to $333 million expected. Adjusted EPS at $0.13 was one cent below the $0.14 expected.

Looking ahead the company expects sales to rise 19.4% to 23% to a range of $1.34 billion to $1.38 billion. Adjusted EBITDA is expected to be in a range of $178 million to $185 million, or up 22.4% to 27.2% from a year earlier.

Disclaimer: We have no position in any of the companies mentioned and have not been compensated for this article.