Krispy Kreme ( KKD) posted solid increases in earnings and revenue for the first quarter, and the doughnut maker projected sound results for the rest of the fiscal year.

For the first quarter, the Winston-Salem, N.C., company said net income rose to $13.1 million, or 22 cents a share, from $8.9 million, or 15 cents a share, in the same quarter a year ago. Excluding the reversal of an accrual related to an arbitration award against the company, Krispy Kreme would have earned 21 cents in the latest quarter.

Total revenue, which includes sales from company stores, franchise operations, and Krispy Kreme Manufacturing & Distribution, rose 33.9% to $148.7 million, compared with $111.1 million in the prior year. Sales from company stores increased 37.8% to $102.2 million, while revenue from franchise operations grew to $5.1 million, an 18.7% increase.

Systemwide sales, including sales of company and franchise stores, rose 24.4% to $227.8 million in the first quarter from $183.1 million in the year-ago period. On a comparable-store basis, systemwide store sales increased 11.2% and company store sales were up 15.4%.

Krispy Kreme now expeccts to earn 90 cents for the full fiscal year. The company forecast earnings of 20 cents for the second quarter, 22 cents for the third quarter and 26 cents for the fourth quarter. Additionally, the company affirmed its previously announced goal of systemwide comparable sales of 10% for the year, with quarterly variations.

Analysts polled by Thomson First Call were expecting earnings of 20 cents in the first quarter, and Wall Street is looking for a profit of 88 cents for the fiscal year. Krispy Kreme's outlook for the second, third and fourth quarters matches the current consensus estimates.

The company also said it still expects to open 77 new stores in 17 new markets and 10 other units, a combination of doughnut and coffee shops or satellite stores, during fiscal 2004.