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Krispy Kreme Jumps on Promising Report

Shares of Krispy Kreme jump after the company reported solid first-quarter earnings and raised guidance the day before.
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NEW YORK (TheStreet) -- Shares of Krispy Kreme (KKD) have jumped after the company reported solid first-quarter earnings and raised guidance the day before.

Krispy Kreme stock has jumped 9.8% to $4.05 in early afternoon trading.

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"Based on our results for the first quarter, which exceeded our expectations, and other current information, we are raising that outlook," the company said in a press release.

Krispy Kreme has raised its full-year operating income guidance to a range of $11 million to $15 million, excluding impairment charges and lease termination costs. Previously, the company was expecting operating income to range from $10 million to $13 million.

Compared to a year-ago, Krispy Kreme's first quarter revenues decreased 1.4% to $92.1 million from $93.4 million. However, excluding the effects of refranchising company stores, revenues rose 0.4%.

Company same store sales rose 3.4%; its sixth consecutive quarterly increase.

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Net income was $4.5 million, or 6 cents a share, compared with $1.9 million, or 3 cents a share a year ago.

These results have been a real confidence booster for the company and its investors; Krispy Kreme shares have suffered over the years, after a lauded IPO nearly a decade ago, as donut sales went into decline and led to the shuttering of some of its franchises, and authorities began probing the company's previous accounting practices.

-- Reported by Andrea Tse in New York

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