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Krispy Kreme Stock Jumps on Rising Sales Ahead of Holiday Season

Krispy Kreme CEO said consumers bought Krispy Kreme sweet treats throughout October for Halloween.

Shares of Krispy Kreme  (DNUT) - Get Krispy Kreme, Inc. Report were rising sharply in after hours trading Tuesday after the doughnut chain reported better-than-expected projections.

The company said it saw solid fiscal third quarter sales and added demand would continue to rise into the holiday quarter.

Shares of the Charlotte, N.C., company closed 4.21% lower at $12.98 a share on Tuesday. Krispy Kreme stock jumped in after hours by 5.55% to $13.70.

Adjusted earnings for the quarter dropped to 6 cents a share from 8 cents in the year ago period but were in line with Wall Street estimates.

“Our third quarter results demonstrate the benefits of our omni-channel and global expansion strategy," said Chief Executive Mike Tattersfield in a statement. 

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For the three months ended Oct.3, Krispy Kreme more than halved its losses to $5.6 million, or 4 cents a share from a loss $14.8 million, or 12 cents a share in the year-earlier quarter.

Revenue rose 18 % to $342.8 million from $290.2 million in the year-ago quarter.

Analysts surveyed by FactSet estimated Krispy Kreme to clock earnings of 6 cents a share on revenue of $337.66 million.

GAAP revenue from international markets rose 37.4% to $87.3 million from $63.5 million in the same period a year ago.

While GAAP revenue from the U.S. and Canada grew 11.5% to $225.8 million from $202.6 million in the previous year.

For the full fiscal year 2021, Krispy Kreme expects adjusted net income to grow between $62 million to $68 million on revenue growth between $1.34 billion and $1.38 billion.