Krispy Kreme net tops $2.3 million on higher sales
December 2, 2010
by Eric Schroeder
WINSTON-SALEM, N.C. — Strong sales helped drive earnings of $2,390,000, equal to 3c per share on the common stock, at Krispy Kreme Doughnuts, Inc. in the third quarter ended Oct. 31. The income compared with a loss of $2,388,000 in the third quarter of fiscal 2010.
Sales for the quarter were $90,228,000, up 8% from $83,600,000 in the same period a year ago. Same-store sales at company-owned locations rose 5%, the eighth consecutive quarterly increase.
“We delivered a strong performance in the third quarter, characterized by revenue growth, a significant increase in consolidated operating income, and a positive bottom line for the fourth consecutive quarter,” said Jim Morgan, chairman, president and chief executive officer. “Higher sales by company and franchise shops drove profit improvements in the KK Supply Chain segment, and our international franchise business continued to exceed our expectations. Company stores continued its impressive track record of positive same-store sales, although there is much more work to be done to restore our largest business segment to consistent profitability.”
Krispy Kreme raised its full-year fiscal 2011 operating income guidance to between $17 million and $20 million, up from $13 million and $17 million projected when the company issued its second-quarter financial results.
For the nine months ended Oct. 31, net income totaled $9,065,000, or 13c per share, up from a loss of $677,000 in the same period of fiscal 2010. Net sales for the nine months rose 4% to $270,277,000 from $259,750,000.