NEW YORK (TheStreet) -- Krispy Kreme (KKD) investors found little sweet about the company's earnings report. The company lowered full-year EPS projections due, in part, to higher than expected "executive management succession" costs. It also slightly missed consensus revenue estimates.
Management lowered full-year EPS projections to between 69 cents and 74 cents. The new range shaves four cents off the low end and five cents off the high end. The stock fell nearly 15% Tuesday to around $16.16.
Investors on StockTwits.com said the lowered guidance was the latest disappointment for a company that has struggled to turn itself around -- and, at least for a time, appeared to be succeeding. But not this quarter. Same-store sales fell 1.5%--a drop management blamed on cold weather. International store sales fell a currency adjusted 2.2%.
$KKD So wait, people don't eat donuts during really cold weather or what?!?? Mick (@MickeTrader) Jun. 3 at 09:28 AM
Earnings met Wall Street's tepid expectations. The company met consensus EPS estimates of $0.23. However revenues came in light, $121.6 million vs. analysts' projected $126.68 million, according to the Analyst Ratings Network.
Some investors on StockTwits.com said the selloff was overdone given the EPS meet. They argued that shares should be higher if guidance was the main reason for investors taking down the company's market cap.
Bulls also argued that getting the right executives in place -- even if it meant spending more in the short run -- would help the company grow long-term and expand abroad.