Coffee ‘n’ donuts keeping us sweet ??

The news over the last week has been challenging for many as we sit down with our daily coffee (or three ???). Navigating a global pandemic while WFH is one thing, but trying too to digest events unfolding in Ukraine and across share markets feels like… a lot. And it seems we’re not the only ones partaking in sugary relief. Sales of coffee and donuts have been frothing over the last year.?

After brewing up a record full year result in 2021, Starbucks (SBUX) has continued to see sales pour in. Comparable same store sales in the first quarter of 2022 jumped 13%, globally fueled by increasing demand even as the company increased prices to battle inflation. With coffee such a piping hot commodity, is it any wonder that donuts are also flying off shelves? ??♂? Krispy Kreme’s (DNUT) full year result in 2021 came fully glazed as net revenue boomed 23% vs the prior year. Like Starbucks, part of the highs were driven by pricing increases, but the real sprinkles on top was the jump in sales from ‘limited time offerings’. That includes things like stuffing an entire Twix bar into a doughnut. Mmm… donut. ???

Canadian donut house Tim Hortons (owned by Restaurant Brands (QSR) in the US), has jumped onto the novelty wagon too, releasing a donut colab with fellow Canadian Justin Bieber called ‘Timbiebs’. They must have delivered on the yummy yum, because Tim Hortons hopped, skipped and jumped 10% in quarterly sales. ?? Not to be out done in the donut department, sweet treat company Hostess (TWNK) has joined the party creating caffeinated donuts, combining two of the body’s most glorious fuels – sugar and caffeine - into one convenient snack. It could be the high we need as we steel ourselves for the potential of more uncertainty in the weeks ahead.

We’re not financial advisors and Hatch news is for your information only. However dazzling our writing, none of it is a recommendation to invest in any of the companies or funds mentioned. If you want support before making any investment decisions, consider seeking financial advice from a licensed provider. We’ve done our best to ensure all information is current when we pushed ‘publish’ on this article. And of course, with investing, your money isn’t guaranteed to grow and there’s always a risk you might lose money.