Krispy Kreme Doughnuts
posted a 47% increase in earnings and a 41% jump in revenue, helped by nearly two dozen new store openings in its latest quarter, and the company believes that full-year earnings will top Wall Street's expectations.
For the second quarter ended Aug. 3, the company earned $13 million, or 21 cents a share, compared with $8.9 million, or 15 cents a share, in the prior-year period. Analysts were calling for 20 cents a share.
Total revenue was $161.8 million, up from last year's $114.6 million. Company-owned store sales rose 39.6% to $104.3 million. Revenue from franchise operations was $6 million, up 24.7%.
Systemwide sales, which includes sales of company and franchise stores, rose 27.6% to $238.5 million, compared with $186.9 million last year. On a comparable-store basis, systemwide sales increased 11.3% and company-store sales were up 15.6%.
During the quarter, Krispy Kreme opened 22 new stores in 12 new markets, including Sydney, Australia, and Boston.
The company now expects to earn 91 cents a share for the full fiscal year, ahead of analysts' consensus estimate of 89 cents a share. For the third quarter, the company sees earnings of 22 cents a share, which matches analysts' consensus. The company also expects to meet Wall Street's fourth-quarter earnings target of 26 cents a share.
Additionally, the Winston-Salem, N.C., company affirmed its previously announced goal of systemwide comparable sales of 10% for the year, with quarterly variations. Krispy Kreme also said it still plans to open 77 new stores in 17 new markets during 2004, along with 10 other combination doughnut and coffee shops.
Shares of Krispy Kreme closed at $48.92 Wednesday on the
New York Stock Exchange