Krispy Kreme Doughnuts Misses Q3 Estimates

Krispy Kreme Doughnuts, Inc. KKD reported financial results Tuesday for the third quarter of fiscal 2015, ended November 2, 2014.

Revenue came in at $122.9 million, below estimates of $124.35 million and above the $114.2 million reported in the year-ago period.

Adjusted net income was $12.1 million ($0.18 per share), below estimates of $0.19 and above the $11.2 million ($0.16 per share) reported in the year-ago period.

Operating income rose 9.8 percent to $12.9 million from $11.7 million in the prior year period.

The systemwide store count rose 4.6 percent in the quarter (11.7 percent year-to-date) to 925 Company and franchise shops worldwide.

Systemwide domestic same store sales rose 3.7 percent, including a 3.3 percent gain at Company shops; constant-currency international franchise same store sales declined 2.9 percent.

President and Chief Executive Officer Tony Thompson commented: “We successfully engaged with Krispy Kreme fans and grew traffic during the third quarter through effective limited-time offers and other promotional and marketing incentives. Now that we have regained traffic momentum, in the fourth quarter we are working to balance top line growth with improved shop operating margins.”

Krispy Kreme Doughnuts, Inc. traded at $19.19 in the aftermarket, down 4.91 percent.