Krispy Kreme Shares Jump On Upbeat Earnings

Shares of Krispy Kreme Doughnuts KKD jumped over 5 percent in after-hours trading after the company reported better-than-expected earnings for the first quarter. The Winston-Salem, North Carolina-based company posted a quarterly profit of $10.7 million, or $0.16 per share, versus a year-ago profit of $9.7 million, or $0.14 per share. Excluding one-time items, the company's adjusted earnings rose to $0.24 per share from $0.23 per share. Its revenue gained 9 percent to $132.5 million from $121.6 million. However, analysts were projecting earnings of $0.22 per share on revenue of $135.3 million. The average estimate among 11 Estimize users was for earnings of $0.21 per share and revenue of $135.10 million. Systemwide domestic same store sales increased 5.2 percent in the quarter. Company Stores revenue gained 12.8 percent to $90.7 million in the first quarter. Domestic Franchise revenue jumped 6.0 percent to $3.7 million, while International Franchise revenue rose 2.2 percent to $6.7 million. Its operating income surged 6.8 percent to $17.3 million from $16.2 million. President and Chief Executive Officer Tony Thompson commented: "Solid domestic same store sales growth and improved margin performance at our Company shops enabled us to exceed our internal projections for the first quarter, providing us a strong start to the fiscal year. Guests continued to respond favorably to our limited time offerings. This, combined with our more strategic use of promotional incentives, drove the higher profitability." Krispy Kreme now expects fiscal 2016 earnings of $0.80 to $0.85 per share, versus earlier forecast of $0.79 to $0.85 per share. Krispy Kreme shares gained 5.75 percent to $18.40 in the after-hours trading session.