Krispy Kreme: Beats Forecast, Shares Spike

by Christopher Freeburn | May 21, 2012 1:32 pm

Krispy Kreme Doughnuts (NYSE:KKD[1]) announced that earnings during its fiscal first-quarter[2] 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.

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.

  1. KKD:
  2. earnings during its fiscal first-quarter:

Source URL:
Short URL: