WINSTON-SALEM, N.C. ( TheStreet) -- Krispy Kreme Doughnuts (KKD - Get Report) shares plunged Friday after the company disappointed investors with a quarterly loss as rising commodity costs ate into its bottom line.
Krispy Kreme said late Thursday that it implemented price increases last month to offset higher costs for food ingredients and fuel by an estimated $12 million. By the end of April those price increases will carry over to the chain's grocery and convenience store sales.
If customers are willing to pay those prices and costs are managed effectively, the company expects to earn between $22 million and $24 million in fiscal 2012, higher than the $21 million analysts were expecting.Investors were not convinced, bidding Krispy Kreme shares 15.9% lower at midday Friday, off earlier lows, to $5.93. The stock traded amid heavier-than-normal volume with nearly 4 million shares in play less than halfway through the session, compared with their average daily volume of just 922,000. Krispy Kreme, which competes with privately-held Dunkin' Donuts, booked a fourth-quarter loss of $1.5 million, or 2 cents per share, compared with a year-earlier profit of $500,000, or a penny per share. Revenue rose 6% to $91.7 million. Both top- and bottom-line results missed expectations. Analysts' consensus had been for Krispy Kreme to earn 4 cents per share on revenue of $92.6 million.
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