The Leading Brands Making Dollars from Doughnuts
Homer Simpson may be America’s most famous lover of doughnuts, but he’s far from alone. According to market research provider Statista, more than 200 million Americans consumed the pastry in 2020. In appreciation of this ring-shaped treat, July 10-18 is National Doughnut Week. In honor of this, let’s take a look at some of the leading publicly traded providers of this delicious snack.
After five years away from the public markets, Krispy Kreme Inc. (Tii:DNUT) went public again on July 1 at $17. Though below its planned range of $21-$24, Krispy Kreme shares still managed a 23% gain on its first trading day. The public offering comes roughly six months after the doughnut and coffeehouse chain’s major competitor, Dunkin’ Brands, was acquired by private equity-backed Inspire Brands for $11.3 billion. Founded in 1937, Krispy Kreme has nearly 1,400 retail shops in 33 countries. Though available in some three dozen flavors, Krispy Kreme’s Original Glazed recipe remains a consumer favorite. Consumers can also find Krispy Kreme doughnuts in approximately 12,000 grocery, convenience and mass merchant stores in the U.S.
Unsurprisingly, the company behind such popular snack cakes as Twinkies, Ding Dongs, Ho Hos and Sno Balls has a strong presence in the doughnut space. Hostess Brands Inc. (Tii:TWNK), whose brand dates back to 1919, has a strong lineup of doughnuts (branded as Donettes) in flavors that include powdered, chocolate frosted, glazed and others. Hostess also introduced a few limited edition Donettes: strawberry cheesecake flavored, caramel chocolate and caramel crunch, all available August 23-November 25. Even amid robust competition, Hostess products remain a favorite at supermarket checkouts. In its first-quarter earnings report, the company attributed its 9% increase in net revenue to solid performances from its Hostess branded products.
Though its best-known offerings are in the bread business with brands that include Wonder, Home Pride and Nature’s Own, Flower Foods Inc. (Tii:FLO) has a strong presence in the doughnut space with two distinct product lines. The company’s Tastykake brand has a solid lineup of doughnut flavors and sizes, including regular, mini, powdered, frosted, glazed, and a few seasonal favorites. Boasting zero grams trans-fat, Flower Foods’ Mrs. Freshley’s brand of doughnuts are available in large, small, chocolate, powdered, cake or crunch. In June, Flower Foods acquired Koffee Kup Bakery, Inc., an 80-year-old Burlington, Vermont-based producer of baked breads, English muffins, buns, and doughnuts.
Many Americans have fond childhood memories of a parent returning home with groceries that included a box of Entenmann’s doughnuts. Founded in 1898 by a German immigrant in Brooklyn, William Entenmann delivered the baked goods door-to-door in a horse-drawn wagon. The company is now a subsidiary of Mexico-based conglomerate Grupo Bimbo (Tii:BMBOY) and continues to produce popular boxed doughnuts in more than a dozen flavors.
Last up, mainly because the coffeehouse chain is not widely known for its doughnuts, patrons of Starbucks Corporation (Tii:SBUX) can nonetheless purchase a glazed doughnut or two along with their morning venti Frappuccino. Though Starbucks doughnuts may play second-fiddle to its sandwiches and other baked items, Business Insider named the coffeehouse giant’s doughnuts its second favorite in a 2019 head-to-head comparison. The business publication ranked the Starbucks baked treat behind Krispy Kreme’s glazed doughnut but ahead of similar offerings by Dunkin’ Donuts and Tim Hortons.
Let’s face it. Just about everyone loves doughnuts, and we really don’t need a special day to enjoy one. So, with Springfield’s Homer Simpson in mind, celebrate National Doughnut Week as he would. And don’t forget to say, “Mmm, doughnuts.”