Krispy Kreme narrows loss in year

by FoodBusinessNews.net Staff
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WINSTON-SALEM, N.C. — Krispy Kreme Doughnuts, Inc. sustained a loss of $4,061,000 for the year ended Feb. 1, which compared with a loss of $67,051,000 during the previous year.

Revenue for the year was $383,984,000, down 11% from $429,319,000 during fiscal 2008.

"We are seeing early signs of progress toward achieving a number of our strategic goals," said Jim Morgan, chairman, president and chief executive officer. "We earned an operating profit for the fourth quarter and also for the year, our first annual operating profit since fiscal 2004. We’ve also made measurable progress in implementing our initiatives."

Other progress includes the opening of the company’s first new small retail concept shops, reaching sufficient scale in several markets to begin using a more comprehensive marketing portfolio, domestic franchisees opening five new small retail shops, and enhancing off-premise route profitability by closely focusing on door economics.

For the fourth quarter ended Feb. 1, the company sustained a loss of $303,000, which compared with a loss of $31,815,000 during the same quarter of the previous year. Revenue for the quarter was $91,768,000, down 17% from $110,948,000 during the same quarter of the previous year.

"While there is still much work to be done, we continue to believe our strategies are the right ones, and our extraordinarily committed employees will continue to successfully implement those strategies," Mr. Morgan said. "We look forward to seeing the benefits of those strategies more fully reflected in our financial results in the quarters and years ahead."

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