Krispy Kreme, Dunkin' Donuts Giving Away Free Doughnuts on Friday

NEW YORK (TheStreet) -- Dust that powdered sugar off your tie: Krispy Kreme (KKD) and Dunkin' Brands'  (DNKN) Dunkin' Donuts stores will be giving away their sweet treats for free on Friday, June 5 to celebrate National Doughnut Day.

They're hoping that the popular promotion will help steer hungry customers into stores to spend their savings from lower gas prices and slightly higher wages.

"It's a good way for consumers to spend that pent-up desire to eat out at restaurants," said Darren Tristano, executive vice president at Technomic, a Chicago-based research and consulting firm specializing in the food industry. 

Krispy Kreme will be giving away one doughnut per customer in every state save Connecticut, where it has only one location, while Dunkin' will sweeten the purchase of any beverage with a free doughnut, while supplies last. Both companies have offered the promotion for about a decade.

Doughnut sales in the U.S. have been strong recently, surprising given consumers' increasing focus on calorie counts and healthy ingredients.

Krispy Kreme's system-wide domestic same-store sales rose 3.6% in the chain's most recent quarter, helped by the introduction of a new premium triple-chocolate doughnut. Interestingly, solid sales were seen even as Krispy Kreme offered fewer discounts.

"We scaled back promotional incentives in the fourth quarter to balance our top line growth with improved shop operating margins," said Krispy Kreme president and CEO Anthony Thompson on a Mar. 11 earnings call.

The company's stock is down 12% this year, however, as investors expected even better profits. 

Meanwhile, Dunkin' Brands has also continued to pad its sales via premium items.

If you liked this article you might like

5 Brands Cashing In on the Solar Eclipse

Krispy Kreme, Hershey's Collaborating to Satisfy a Craving You 'Never Knew You Had'

Shaquille O'Neal Joins the Krispy Kreme Team

Shake Shack Shares Too Pricey to Bite Into

Forget Frosé! We Took the Recipe One Step Further