Krispy Kreme Clears Target by a Penny

Krispy Kreme Doughnuts (KKD) beat analysts' earnings estimates by a penny in the latest fourth quarter, and the company expects to meet Wall Street's expectations for fiscal 2003.

Net income rose to $8.3 million, or 14 cents a share, from $4.3 million, or 8 cents a share, in the same period a year ago. The latest fourth quarter, which ended Feb. 3, had 14 weeks, and the same quarter a year ago had 13 weeks. The Winston-Salem, N.C., company estimated that the extra week added a penny a share to earnings.

Systemwide sales, including sales at both company and franchise stores, increased 46.3% to $182.6 million in the fourth quarter. On a comparable-store basis, systemwide store sales were up 13.1%. Same-store sales at company-owned doughnut shops rose 10.7%.

Total company revenue, which includes sales from company stores, franchise operations and Krispy Kreme Manufacturing & Distribution, rose 43% to $117.1 million from $81.9 million in the fourth quarter of fiscal 2001.

Krispy Kreme forecast first-quarter earnings of 14 cents a share and fiscal 2003 earnings of 62 cents. According to First Call, analysts expect earnings of 14 cents in the quarter and 61 cents for the year. Additionally, the company expects to open 59 new stores in 15 new markets this fiscal year. The company also expects to sign at least two franchise agreements covering international markets.

Shares of Krispy Kreme were recently up 81 cents, or 2%, to $40.36 on the New York Stock Exchange .

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