Krispy Kreme Significantly Narrows Its 4Q Loss

WINSTON-SALEM, N.C. (AP) — Krispy Kreme Doughnuts Inc. said Thursday it substantially narrowed its fiscal fourth-quarter loss, free of most of the impairment and lease termination costs that burdened its prior-year results.

The doughnut retailer also touted its first annual operating profit since fiscal 2004.

The news sent the company's stock up 50 cents, or 22.1 percent, to $2.78 in afternoon trading. Over the past year, the shares have traded in a range of $1.01 to $5.65.

Krispy Kreme lost $303,000, or less than a penny per share, during the quarter compared with a loss of $31.8 million, or 50 cents per share, a year earlier.

The previous year's results were weighed down by $27.6 million in impairment charges and lease termination costs. That amount was substantially reduced to $1.2 million for the period ended Feb. 1.

Operating profit was $1.5 million for the fourth quarter compared with an operating loss of $25.2 million a year ago.

Sales fell 17 percent to $91.8 million from $110.9 million, but same-store sales — a key gauge of a retailer's performance — edged up 0.9 percent.