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Krispy Kreme Doughnuts Reports Q4 Earnings; Shares Leap

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Krispy Kreme Doughnuts (NYSE: KKD) reported its financial results for the fourth quarter and fiscal year ended February 2, 2014. Much needed good news came out of Wednesday's earnings report and conference. Shares of the pastry company are up 9.96 percent or $1.98 per share to $21.85 per share.


The company raised its diluted earnings per share guidance for fiscal 2015 to reflect fewer shares outstanding, which resulted from share repurchases.

The company has also announced that its Board of Directors has authorized and increased the current share repurchase authorization from $50 to $80 million.

The pastry company had its revenues increase marginally to 112.7 million which was up from 109.1 million; this represented a 3.3 percent increase.

The Doughnut Company also had its same store sales increase 1.6 percent, this increase represented a consecutive 21 quarterly increase, unlike the majority of other companies recently, Krispy Kreme, said that despite harsh winter weather in several key markets they had performed well.

James H. Morgan, Chairman and Chief Executive Officer, commented:

“Fiscal 2014 was an outstanding year at Krispy Kreme, and we thank our Company team members and our franchise partners for their outstanding contributions.”

“We reported our fifth year in a row of higher same store sales at Company shops, notwithstanding tough comparisons and harsh winter weather that affected several Company markets as we closed out the year in January.”

Operating income jumped 27 Percent to $9.1 million from $7.2 million. Cash at the end of the year also totaled $55.7 million, which does not include the Company's repurchase of $20.5 million of common stock in fiscal 2014.

Fiscal 2014

Revenues have increased 7.9 percent to $460.3 million from $426.8 million. Same store sales rose 6.7 percent; this represents a fifth consecutive annual increase. Operating income increased 28 percent to $46.6 million from $36.4 million.


The company is expecting 10 to 15 small, free-standing factory shops to open in 2015, and is also estimating that the company's domestic franchisees to open between 20 to 25 Krispy Kreme shops. Internationally the company is forecasting its franchisees to open about 85 locations.

Fiscal 2015 adjusted net income will be in the range of $51 million to $55 million and adjusted earnings per share will range from $0.73 to $0.79 per share based on a 70 million diluted shares outstanding estimate.

Posted-In: Earnings News Guidance Buybacks


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