The yeast-raised donuts are cut into a snowman shape, iced with white icing and decorated with a snowman’s face and buttons.
"This donut, a customer favorite, is the perfect addition to your winter breakfast or holiday party as well as a thoughtful gift to friends," said Ron Rupocinski, executive chef for Krispy Kreme, in a company release.
Despite their cute appeal, the snowman donuts likely will not be the answer to Krispy Kreme’s financial woes. The company reported that its third quarter systemwide sales (ended Oct. 28) decreased 2.6 percent from the third quarter last year. In order to trim profit losses, the company closed 17 factory stores, 12 stores in the U.S. and 25 franchises during the first nine months of the year.
The company did open 24 international stores during that time period, but domestic sales are what counts for investors. JPMorgan analyst John Ivankoe said Krispy Kreme is dealing with lower average weekly sales, higher ingredient costs and high royalty payments.
The only way to counteract those problems may be improving the company’s U.S. same-store sales, or sales at stores open at least a year. Ivankoe said Krispy Kreme is looking to cut costs, and closing more stores will help. However, he believes the company may have to spend more money on marketing to drive up sales. He added that growing ingredient prices will make it hard for the company to break even in the fiscal fourth quarter. Krispy Kreme’s share value has dropped 82 percent since 2003.
