Krispy Kreme Doughnuts Inc. (NYSE:KKD) reported net income above Wall Street’s expectations for the third quarter. Net income for Krispy Kreme Doughnuts Inc. rose to $4.7 million (7 cents per share) vs. $2.4 million (3 cents per share) in the same quarter a year earlier. This marks a rise of 97.4% from the year earlier quarter. Revenue rose 9.4% to $98.7 million from the year earlier quarter. KKD beat the mean analyst estimate of 6 cents per share. Analysts were expecting revenue of $99.3 million.
Chief Executive Officer James H. Morgan commented: “Our third quarter performance reflects continued progress in strengthening our financial condition and realizing our vision for the Krispy Kreme brand. We generated a healthy increase in revenues, recorded our twelfth consecutive quarter of positive same store sales at Company stores, and delivered substantial improvements in both profitability and operating cash flow. Despite economic headwinds and input cost challenges, we now project fiscal 2012 consolidated operating income, exclusive of impairment charges and lease termination costs, of $24 to $26 million, which would represent at least 25% growth over fiscal 2011.”
Competitors to Watch: Retail Food Group Limited (NYSE:RFG), Jamba, Inc. (NASDAQ:JMBA), Peet’s Coffee & Tea, Inc. (NASDAQ:PEET), Starbucks Corporation (NASDAQ:SBUX), Tim Hortons (NYSE:THI), Wendy’s (NYSE:WEN), McDonald’s (NYSE:MCD) and Panera Bread Company (NASDAQ:PNRA).
The Fresh Market Inc. (NASDAQ:TFM) reported its results for the third quarter. Fresh Market is a specialty food retailer. Net income for the grocery store rose to $9.2 million (19 cents per share) vs. $12.39 million (26 cents per share) in the same quarter a year earlier. This marks a decline of 26% from the year earlier quarter. Revenue rose 15.1% to $263.3 million from the year earlier quarter.
“We are excited to report another solid quarter of sales and earnings growth,” said Craig Carlock, President and Chief Executive Officer. “Our comparable store sales grew 5.5% in the quarter, making it both our best quarter of this fiscal year and our eighth consecutive quarter of comparable store sales growth of 4.0% or greater. We were also able to maintain our operating margin of 5.5% this quarter despite pressure from rising food and commodity costs and despite the additional costs incurred related to being a publicly-traded company. Additionally, on the real estate front, we opened one new store in the third quarter and we have opened one additional store to date in the fourth quarter.”
Competitors to Watch: Whole Foods Market, Inc. (NASDAQ:WFM), Safeway Inc. (NYSE:SWY), The Kroger Co. (NYSE:KR), Ruddick Corporation (NYSE:RDK), Ingles Markets, Inc. (NASDAQ:IMKTA), Winn-Dixie Stores, Inc. (NASDAQ:WINN), SUPERVALU INC. (NYSE:SVU), Weis Markets, Inc. (NYSE:WMK), Wal-Mart (NYSE:WMT), Target (NYSE:TGT) and Arden Group, Inc. (NASDAQ:ARDNA).