WINSTON-SALEM, N.C. — Calling it an “affirmation of our positive outlook for the future,” the board of directors of Krispy Kreme Doughnuts, Inc. has increased the company’s current share repurchase program to $105 million from $80 million. The current authorization originally was approved by the company’s board of directors in July 2013, and was increased to $80 million from $50 million earlier this year. Including the increase announced Sept. 17, there is approximately $50 million remaining for future purchases under the program.
“We view this additional repurchase authorization as an affirmation of our positive outlook for the future,” said James H. Morgan, executive chairman. “We are confident we have the capital resources to continue to implement and expand the scope of our system-wide growth plans. While we always seek to first deploy cash to grow the business, we will complement that usage, as appropriate, with other means of increasing shareholder value. The repurchase authorization announced today reflects our desire to further enhance shareholder returns when our cash flow generation exceeds our current needs and when doing so is in the best interests of our shareholders.”
As of Aug. 3, the company had approximately 64 million shares outstanding.Last week, Krispy Kreme said strategic promotional offers and other marketing efforts lifted traffic and top-line growth during the company’s second quarter. For the quarter ended Aug. 3, the company had net income of $5,752,000, equal to 9c per share on the common stock, up 22% from $4,717,000, or 7c per share, in the comparable period. Revenues totaled $120,516,000, up 7% from $112,729,000 the year before.