Krispy Kreme’s shares are soaring on news of a strong quarter.
Shares are up as much as 17%, the most in two years, reports Craig Giamonna at Bloomberg News.
The company’s same-store sales rose more than 5% from the first quarter of last year. The brand also expanded its restaurant fleet.
Krispy Kreme’s booming business proves that the idea that modern consumers prefer healthier options is a myth.
The company has stuck to a classic menu of doughnuts made fresh, while competitor Dunkin’ Doughnuts has expanded its menu to offer healthier fruit and flatbreads.
The discrepancy between what consumers say they want and what they actually buy has been a hard lesson for many fast food chains, including McDonald’s.
Millennials say they want food that is high quality, free of additives, and sustainable, but they aren’t always willing or able to pay for it.
Former CEO Don Thompson said the brand cut many of its premium salads because people rarely ordered them.
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