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Krispy Kreme has been specializing in hot, glazed doughnuts since 1937. The company has not changed the recipe for their Original Glazed Doughnut, their best seller, since way back when. This week, they announced their second quarter sales results, and clearly, original glazed is still a hit: revenue was $120.5 million with 884 locations worldwide. Almost 400 locations have been added since 2012.

(AP Photo/Chuck Burton)

In 1992, the company pushed their brand further when they invested in neon signs that read "Hot Doughnuts Now." The sign serves as a notice to passersby that doughnuts are at their prime, luring in drivers (and their dollars) at all hours of the day or night. Since that time, Krispy Kreme has been slowly but surely expanding their brand. This quarter, sales growth was a whopping 22 percent.

"A key priority going into the quarter was to regain top line momentum in our Company shops," said Krispy Kreme President and Chief Executive Officer Tony Thompson, "And we did, by very strategically using promotional incentives and other marketing tools to increase traffic count and top line growth."

In order to diversify their sweet offerings, Krispy Kreme decided to make custom shaped and speciality doughnuts. They have been offering up promotional flavors ever since. In the first half of this year, Krispy Kreme offered the Lotta Latte Doughnut promotion, offering two java flavored doughnuts for only about five weeks, and encouraging customers to taste the sweets based on their ephemeral nature.

During the second quarter, which ended on August 3rd, Krispy Kreme went with the Batter Doughnuts promotion, birthday cake and brownie batter doughnuts, meant to celebrate Krispy Kreme's 77th birthday. Spokesperson Lafeea Watson described this promotion as a huge hit. This was the first time the company had thrown a birthday party, and created birthday flavors, for themselves, and they certainly reaped the rewards in their earnings. Their net income was $5.8 million, $.08 a share, up from $4.7 million this time last year.

Even if next year's birthday party isn't a hit, Krispy Kreme will always have their original flavors to stand by. They offered the donut rankings by sales to The Wire:

  1. Original Glazed
  2. Chocolate Iced Glazes
  3. Chocolate Iced Glazed with Sprinkles
  4. Glazed Raspberry Filled.

Though sales were up, Krispy Kreme fell slightly since earnings were announced:

via MSN Money.

This article is from the archive of our partner The Wire.

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