Krispy KremeRevenue for the third quarter of 2013 rose 18% thanks to rising prices for fresh doughnuts. These higher prices helped offset increasing commodity and labor cost.

Extended trading on Tuesday saw shares rise more than 4 percent

Mike Tattersfield CEO stated that customers will spend more for fresh doughnuts. The company has been able to deliver fresh doughnuts to all of its locations every day in recent years. The price of the doughnuts is determined by whether people actually buy them.

Tattersfield explained that “Because our business is a dozens, we have much more flexibility when it comes to how we price.” “… Our brand isn’t very frequent. “People still celebrate and will continue to enjoy them, so people tend to think of the business as, “Yes, we’d love to have fresh Krispy Kreme doughnuts.”

Tattersfield also stated that specialty doughnuts are a popular choice for customers willing to pay as much as 50% more.

Krispy Kreme hiked prices in September. They plan to increase their prices further for the fourth quarter. Tattersfield did not provide details on the amount of customers who are paying more.

Krispy Kreme reported that its fiscal third quarter loss was $5.7 million or 4 cents per shares, down from $14.9 million or 12 cents per sharing a year ago.

The company’s earnings were 6 cents per shared, which was in line with analyst expectations.

Refinitiv’s survey of analysts found that net sales topped Wall Street’s expectation of $337.7 Million in quarter one.

The organic revenue rose 14% in comparison to a year ago, while it was 22% for a 2-year period. Insomnia Cookies, a cookie company that is owned by Krispy Kreme, was also acquired.

Since July’s return to the public markets, Krispy Kreme shares its quarterly results. This stock fell 39% in the past year since it was first listed, giving it an estimated market value of $2.18billion. On Tuesday, shares closed down by more than 4 percent.