Krispy Kreme has warned of potential price increases as production and ingredient costs continue to rise.
The doughnut company rose its prices twice in the fourth quarter of 2021. As a result, its prices are now up high-single digits worldwide in a bid to tackle soaring inflation rates, according to its chief executive Mike Tattersfield.
Despite the price rises, Tattersfiled credited a strong Halloween and holiday demand for the company’s strong sales growth.
The news comes as Krispy Kreme reported its first quarterly profit since going public again, but fell short of Wall Street’s expectations for its earnings.
Shares of the doughnut company rose nearly 2% in premarket trading but since its initial public offering in July, the stock has struggled, falling 33%.
READ MORE: Nestlé warns of potential prices rises
The doughnut company currently offers pre-packed doughnuts in Tesco supermarkets, including a sharer dozen pack, a six mini doughnut pack and a three-pack retailing for £13.95, £6.25 and £5.73 respectively.
“Looking ahead, we are well-positioned to deliver another year of double-digit revenue growth in 2022. Our performance will be led by the expansion of our omnichannel model, as we continue to significantly expand our points of access,” Krispy Kreme chief executive Mike Tattersfield said.
Looking ahead to the first quarter, he expects Valentine’s Day saw strong sales as the event is typically a big day for the doughnut business.