NEW YORK (TheStreet) -- Shares of Krispy Kreme Doughnuts (KKD are slumping by 6.79% to $14.34 on heavy trading volume late Wednesday morning, after the Winston Salem, NC-based company posted its 2016 fourth quarter results.
After yesterday's closing bell, the doughnut retailer reported adjusted earnings of 22 cents per share, topping analysts' estimates by one cent.
Revenue rose by 4% to $130.4 million year-over-year, but fell short of Wall Street's projections of $133.02 million.
For fiscal 2017, the company expects adjusted earnings per share between 87 cents and 91 cents, missing expectations. Analysts are looking for earnings of 93 cents per share.
Additionally, Krispy Kreme said system-wide domestic same-store sales increased by 1.6% during the period and 3.9% during the full year.
The company also said it would open 120 to 140 international stores, higher than its earlier estimate of about 100 stores.
Krispy Kreme has had difficulty maintaining growth in a market dominated by Starbucks Corp. (SBUX) and Dunkin' Donuts (DNKN), which have more locations and loyalty programs, Bloomberg noted.
About 1.44 million of Krispy Kreme's shares were traded by this morning, well above its average volume of 415,676 shares per day.
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Separately, TheStreet Ratings Team has a "Hold" rating with a score of C on the stock.
The primary factors that have impacted the rating are mixed - some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks.
The company's strengths can be seen in multiple areas, such as its revenue growth, largely solid financial position with reasonable debt levels by most measures and good cash flow from operations.
As a counter to these strengths, the team also finds weaknesses including a generally disappointing performance in the stock itself, deteriorating net income and disappointing return on equity.
Recently, TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author.
You can view the full analysis from the report here: KKD