Krispy Kreme Glazes Menu With Healthy Options

WINSTON-SALEM, N.C. ( TheStreet) -- Krispy Kreme Doughnuts ( KKD) will add oatmeal, yogurt and fruit juice to its menu as it looks to ramp up sales and compete with healthier food options offered by Dunkin' Donuts, Starbucks ( SBUX) and McDonald's ( MCD).

CEO James Morgan is adding the new menu items in an effort to maintain the momentum of Krispy Kreme's last quarter report when it booked a profit of $9.17 million on sales on $104.6 million, more than twice its year-earlier results.


He also sensed that customers were looking for something more than just hot glazed donuts, Morgan told Bloomberg. "We weren't getting a lot of verbal complaints," he said. "But we also were not getting the sales we thought we should."

Adding healthier food options and specialty coffees to fast-food menus has been a growing trend. McDonald's began offering salads years ago. It also famously added oatmeal to its breakfast menu recently as well. But one critic argued that with the addition of brown sugar, maple flavoring, fruit and raisins, the item "has about the same amount of sugar as a Snickers bar, has about the same amount of calories as one of their hamburgers, costs more than one of their hamburgers," said Mark Bittman, a food author and blogger for The New York Times. (But that's another matter).


Starbucks also offers hot oatmeal, with options to add brown sugar, dried fruit and a nut medley.

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The Golden Arches' McCafe menu, which offers specialty coffees and espresso drinks along with regular coffee, is practically engaged in a market share battle to steal away penny-pinched customers from coffee behemoth Starbucks.

Selling coffee is more profitable than donuts, Bloomberg reported, and Krispy Kreme's Morgan has plans to roll out signature coffee blends, espressos and lattes over the next 18 months as it looks to capture a piece of that lucrative market.


Like Dunkin' Donuts, which also added lattes and specialty coffee drinks to its menu in recent years, Krispy Kreme's efforts come with the company's understanding that being a one-trick pony likely won't cut it forever. Dunkin' has long offered bagels, sandwiches, wraps and muffins, hoping to bring diners in not just for their morning coffee-and-a-donut fix but for lunch as well.

Sugar-loving purists need not worry, however. Krispy Kreme is also reportedly testing a new donut milkshake in its home state of North Carolina. If the beverage proves successful in the test market, it could make its way to Krispy Kreme locations nationwide.

-- Written by Miriam Marcus Reimer in New York.

>To contact the writer of this article, click here: Miriam Reimer.

>To follow the writer on Twitter, go to http://twitter.com/miriamsmarket.

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