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Consumers didn’t just have love on the brain on Valentine’s Day. They also appeared to be pop-eyed for Krispy Kreme’s heart-shaped doughnuts, which gave the doughnut maker its best sales day ever during its first quarter.
“It was the biggest sales day in the history of the company,” said Josh Charlesworth, Krispy Kreme’s CEO, said during the company’s earnings call on Thursday.
Charlesworth, who took over as chief executive in January 2024, said that despite recent “softness” from consumers in discretionary spending, the bakery company has seen “plenty of consumer engagement” for its doughnuts and pointed to other events, including April’s solar eclipse, as a sales driver. Krispy Kreme plays a “unique role” as an occasional sweet treat for consumers during major events, he added.
During the first quarter, Krispy Kreme reported a sales increase of 5.7%. That rise was in part due to digital sales, which rose 26%, and strong consumer demand for its speciality doughnuts on Valentine’s Day.
The Charlotte, North Carolina-based company beat Wall Street’s expectations. During that first quarter, the company reported revenue of $442.7 million, about $0.07 cents a share. Analysts forecasted it would report $434.1 million, approximately $0.06 cents a share, according to FactSet.
Kripsy Kreme has big plans to increase access to its doughnuts. One of its most recent initiatives involves working with McDonald’s. The partnership, announced in March, is expected to bring the pastry treats to about 13,500 McDonald’s locations nationwide. The company plans to open about 900 new stores across the U.S. by 2027.
During the earnings call, CEO Charlesworth said that Krispy Kreme wants to increase its points of access and pointed to retailers like Target and markets like Germany.