Krispy Kreme (KKD) reported sales and earnings missed forecasts and offered an outlook full of holes, followed by a 12 percent drop in their shares on Thursday.

The drop has left the company down more than 20 percent this year hitting its lowest point since May 2013, according to CNN Money.

But some are baffled as to why the company is doing so poorly and wondering if it is because the uptick in healthy eating. But when looking at the facts, that’s not the problem. To support that is the case that their rival, Dunkin’ Brands (DNKN) is up 12 percent so far in 2015.

The problem points to Krispy Kreme fans that are only buying doughnuts at the company’s actual store fronts. This is leaving their consumer packaged goods on the shelf at supermarkets and other retailers. On top of that, CFO George Price Cooper announced at the company’s conference call with analysts that the return rate from Krispy Kreme’s wholesale partners was much higher than usual.

But Krispy Kreme has followed in line with its competitor’s trends by attempting to diversity beyond demand, a strategy that is not working for them. The only notable product outside of their store fronts has been the Krispy Kreme K-Cup.

Luckily their new CEO, Tony Thompson, over from Papa John’s last year is laser focused on their successful brand at their stores and will be opening new locations across the nation as well as internationally while pulling products from the consumer shelves.

Although they are beginning to shy away from one-day gimmicky sales promotions, they will be continuing with their famous Talk Like a Pirate Day promotion in September that attracts the masses into the stores for a shot at free doughnuts when they give their best Blackbeard impression.

Thompson said they will be following in the famous footsteps of Starbucks who made the “limited time offering” of seasonal items a goldmine.