One-time Wall Street darling
Krispy Kreme Doughnuts
remains on a roll.
Profits at the Winston-Salem, N.C.-based company rose 43.4% to $14.5 million, or 23 cents a share, compared with $10.1 million, or 17 cents, a year ago, as it continued to open new stores, expand distribution and increase market share.Thomson First Call consensus was 23 cents a share. Revenue rose 31.4% to $169.6 million from $129.1 million.
On the downside, average weekly sales continued their decline, down 3% in the quarter, suggesting rapid expansion is coming at a price.
Krispy Kreme also affirmed fourth-quarter earnings of 26 cents a share, again matching analysts' expectations, and reaffirmed its full-year goal of a 10% increase in comp store sales.
During the quarter ended Nov. 2, the company opened 27 new stores in ten new markets, including its first in Europe, located in the upscale department store Harrods in London. For the year, the company increased its plans for new stores to 92 and 97, from 87.
Shares were recently up $1.85, or 5% to $40.55, well off the 52-week high of $49.74 they touched in August.