It appears that the pandemic has everyone rushing out for their favourite frosted donut, with Krispy Kreme (ticker: DNUT) reporting a 22.5% increase in revenue for its second quarter.
The results were a significant improvement from its 6.7% decline from the same period last year.
Following the impressive earnings report, stocks of the coffeehouse chain company rose 3.2% to $14.49 in after hours trading on Tuesday. So what was behind the major change? Krispy Kreme reported that international sales are what has been propelling its growth.
Speaking to Barron’s, CEO Mike Tattersfield said that the recent report is a testament to the company’s dedication to growth over the last few years, including a focus on its omnichannel model.
Tattersfield noted that the company’s “fresh doughnut delivery system allows [it] to go where the customers are,” in both the US and internationally.
Moving forward, he explained that in the future, the company would have the flexibility to deliver online via a “dark store”, in-person at a store, or via delivery—helping the company’s ability to pivot and grow if a threat like the delta variant picks up pace.
The company also has Insomnia Cookies to thank for its growth, a New-York-based chain of bakeries in the US that specializes in making cookies and baked goods, which Krispy owns a majority stake in. Insomnia’s digital presence allows it to thrive in delivery and gifting, which is especially crucial during Covid times.
Krispy Kreme closed at 4% in regular trading Tuesday. Since its public listing on July 1, the company’s share price has soared as high as $21.69.