Krispy Kreme: Beats Forecast, Shares Spike

Earnings fall 34% while sales rise, but fall short of estimates

   

Krispy Kreme: Beats Forecast, Shares Spike

Krispy Kreme Doughnuts (NYSE:KKD) announced that earnings during its fiscal first-quarter plunged 34% to $6.03 million, down from $9.17 million during the same time last year. Adjusted EPS for the quarter was 14 cents, which topped Wall Street’s prediction of 8 cents, Reuters said.

Investors were happy with the results, sending Krispy Kreme share up more than 11% in Monday midday trading.

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Company sales rose 3.7% to $108.5 million. That fell short of analysts’ estimates of $111 million in sales.

The company attributed the earnings drop to unfavorable tax rates. Krispy Kreme has kept ahead of a renewed public focus on healthier foods by adding popular beverages including coffee to its donut shops.

Company-owned stores saw sales rise 2.1% during the quarter. Sales at international franchise stores fell 7.9%, while U.S. franchise outlet sales were up 5.8% compared to last year. The company’s operating margin increased to 10% from 9.4%.

Krispy Kreme reiterated its previously announced estimates for the full year.


Article printed from InvestorPlace Media, http://investorplace.com/2012/05/krispy-kreme-beats-forecast-shares-spike/.

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