WINSTON-SALEM, N.C. — Net income at Krispy Kreme Doughnuts, Inc. totaled $9,416,000, equal to 15c per share on the common stock, in the first quarter ended May 1, down 12% from $10,666,000, or 16c per share, in the same period a year ago. Net revenues increased 3% to $136,484,000 from $132,474,000.
In May, Krispy Kreme reached an agreement to be acquired by JAB Holding Co. for $21 per share in cash, or approximately $1.35 billion. The agreement has been unanimously approved by the board of directors of Krispy Kreme and represents a premium of approximately 25% over the company’s closing stock price of $16.86 on May 6. The company’s share price closed at $21.38 on May 31 on the New York Stock Exchange.
As a result of the proposed merger, Krispy Kreme did not update its outlook for fiscal 2017 and will not hold a conference call to discuss first-quarter results.
Operating income at Krispy Kreme totaled $15,894,000 in the first quarter, down from $17,275,000 in the same period a year ago. Operating income within the company’s domestic franchise outlets and Krispy Kreme supply chain increased year-over-year, while it decreased within company stores and international franchise outlets.General and administrative expenses were $7,483,000 in the first quarter, which compared with $7,554,000 in the same period a year ago. The most recent quarter’s results included about $100,000 in employee termination benefits and $500,000 in merger-related costs.