Krispy Kreme to Jump on the Healthy Eating Bandwagon
When most people think of Krispy Kreme, they think of the glazed donut that has made the chain famous. They certainly don't go there to eat healthy.
Krispy Kreme is hoping to change that by introducing healthier fare like oatmeal, yogurt and fruit juices to their menu. This is part of a plan by Chief Executive Officer James Morgan to revive the company.
Krispy Kreme became a hot pick for investors in the late '90's and remained that way until 2004 when the company's accounting practices came into question. After that, the company experienced slowing sales and financial losses, with stocks (KKD) hitting rock bottom at $1.18 per share in February of 2009 (down from a high of $108.50 in 2003). The company's stock has been steadily rising over the last year, trading at a 52 week high of $9.46 today.
Despite all of that, the company has a lot of ground to make up to catch up with competitors Dunkin' and Starbucks. In addition to healthier fare, Krispy Kreme also intends to increase sales by expanding their coffee selection starting in September to further boost sales.
Many fast food chains have been starting to offer nutritious options in hopes to boost lagging sales. With increased focus on healthy eating, the fast food market hopes to boost sales by adding on items to their menus rather than replacing them. While the main target market for their food remains unchanged, the new items target women, who seem to be the main demographic taking advantage of healthier food options.