Krispy Kreme Posts Record Sales

The doughnut company also preannounces earnings that meet Wall Street's expectation.
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Updated from 8:35 a.m. EST

Krispy Kreme Doughnuts

(KKD)

Tuesday said it had record sales in its fourth quarter and preannounced earnings that met analysts' expectations.

The company held to its previous quarterly guidance of 26 cents a share, matching the consensus view and up from 19 cents a share a year ago.

For 2005, the company expects earnings of $1.16 to $1.18 a share vs. a consensus estimate of $1.16 a share. Krispy Kreme is also forecasting same-store sales growth in the mid to high single-digits and plans to open about 120 new stores during the year.

For its fourth quarter ended Feb. 1, total sales were up 25.6% while comparable-store sales rose 10.7%. The company said sales were hurt by the California grocery store strike and unseasonably warm weather early in the period. Krispy Kreme opened 35 new stores during the quarter and 99 stores in the full year.

The company will formally announce complete fourth-quarter and 2004 results on March 10.

Shares rose 35 cents, or 0.9%, to $37.34.