NEW YORK (TheStreet) -- Shares of Krispy Kreme Doughnuts Inc. (KKD)KKD are slumping, down -9.58% to $17.18 in after-hours trading, after the company lowered its adjusted earnings per share guidance for the full year to a range of 69 cents to 74 cents from 73 cents to 79 cents per share.
The retailer and wholesaler of doughnuts today reported financial results for the first quarter of fiscal 2015, ended May 4, 2014.
The company said system-wide domestic same store sales rose 2.3%, while constant currency international franchise same store sales declined 2.2%.
Revenues increased 0.8% to $121.6 million from $120.6 million; excluding the effects of refranchising stores, revenues for the quarter rose 2.1%.
Adjusted net income rose 12.2% to $15.8 million, or 23 cents per share, from $14.1 million, or 20 cents per share.
Net income was $9.7 million, or 14 cents per share, compared to $8.0 million, or 11 cents per share, in the first quarter last year.
TheStreet Ratings team rates KRISPY KREME DOUGHNUTS INC as a Buy with a ratings score of A-. TheStreet Ratings Team has this to say about their recommendation:
"We rate KRISPY KREME DOUGHNUTS INC (KKD) a BUY. This is based on the convergence of positive investment measures, which should help this stock outperform the majority of stocks that we rate. The company's strengths can be seen in multiple areas, such as its solid stock price performance, impressive record of earnings per share growth, compelling growth in net income, largely solid financial position with reasonable debt levels by most measures and reasonable valuation levels. We feel these strengths outweigh the fact that the company shows weak operating cash flow."