Krispy Kreme lowers donut prices to offset spike in gas prices

Yahoo Finance's Brian Sozzi discusses a new promotion by Krispy Kreme to lower its donut prices to offset high gas prices.

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EMILY MCCORMICK: It's time for "Sozzi's Takes." And today, Brian, you're talking about gas prices and donuts. So tell us, what does Krispy Kreme's new promotion have to do with prices at the pump?

BRIAN SOZZI: Indeed, Emily. This is a fast-food focused Sozzi Take today. So Krispy Kreme, have to give them a shout here. Another clever promotion, another clever traffic-driving promotion, I should say. So from April 13 through May 4, Krispy Kreme will sell a dozen original glazed donuts-- that is their trademark item they sell-- for the price of a gallon of regular gas.

So as of right now, the average, national average for gas is $4.11. And there I am, eating that glazed donut. So if you were to walk in there this week, you can get a dozen Krispy Kreme glazed donuts for $4.11.

Now, normally these dozen donuts would cost you about 10 bucks. So all in all, a pretty good deal. And this comes at a time as the company, and like many other restaurants, are battling high levels of inflation. We just hope-- we just spoke with Krispy Kreme CEO Mike Tattersfield a couple of weeks ago. Here's what he told us on that front.

MIKE TATTERSFIELD: The average user visits a Krispy Kreme 2 and 1/2 times a year, right? So when they're going to use this, it's about a celebration. And it's about a shared experience. So pricing is not the number one feature that someone's walking into Krispy Kreme to order the dozens. What they're looking for, particularly when they're looking at those occasions, is, does the product match their expectations.

BRIAN SOZZI: So Emily, this is very likely a home-run type of promotion for Krispy Kreme. It's catchy as you-know-what. It is a good deal. And who doesn't love a good donut when you can get it for more than 50% off? My take, no surprise. There it is. Tee It up. It is-- Sozzi's pick. Yum! Very simple.

To get a donut at 50%, 60% off discounted price, that is great. Also yum too. It could drive a lot of traffic to Krispy Kreme stores at a time when its stock is under pressure and the street's probably not appreciating what the brand does and the fact that it's probably going to grow units at a 10% plus annual clip for the next few years.

But while we are on fast food, Emily, I'm just going to stay hot here and going to roll right through it. Got to mention Baskin-Robbins real quickly, now owned by Inspire Brands. They were-- originally it was Baskin-Robbins, Dunkin' Donuts under one roof. They were acquired by Inspire for $11.3 billion in late 2020.

They're out with a new logo, Emily. And I think we have it here on the screen, a little side-by-side image. On the right-hand side of the screen, that is the new Baskin-Robbins logo, compared to the one we have known and loved for many, many years on the left.

Now, I was talking to one Baskin-Robbins corporate insider. And apparently they are trying to focus more on just going back to their heritage as a brand. And here's my take-- simple, another one. Here we go. Hate it, hate it. I do not like this logo. I think this is another corporate chieftan just trying to get, or trying to signal to consumers that it's something different.

They're not different. Baskin-Robbins sells 31 flavors. They're ice cream. That's why we go there. We love them. We're not going to go to you to buy very expensive coffee. In many respects I can go to Dunkin', which is in the same store as Baskin-Robbins, and spent $8 for a cold brew. Don't like the logo.

EMILY MCCORMICK: Well, Brian, to be fair, I feel like a lot of us tend to not like logo changes, name changes for companies in the immediate aftermath of these changes going into effect. Maybe it's something we'll get used to. Perhaps they'll change it again down the line. And we'll wish that they had actually left it at what they just changed it to. So we will see on that front.

But going back to your story on Krispy Kreme, of course, pegging the price of a dozen donuts to the price of a gallon of gas. Definitely going to be interesting to see how sales trend for Krispy Kreme over that period. Again that runs from tomorrow, April 13 through May 4. So if you want your $4-and-something cents box of donuts, make sure you--

BRIAN SOZZI: I want it!

EMILY MCCORMICK: --get over to your local--

BRIAN SOZZI: I want it!

EMILY MCCORMICK: --Krispy Kreme. All right, you'll be first in the door, Brian.