Krispy Kreme Doughnuts Earnings: Here’s Why Investors are Happy Now

Krispy Kreme Doughnuts Inc. (NYSE:KKD) delivered a profit and beat Wall Street’s expectations, AND beat the revenue expectation. The revenue beat is a positive sign to shareholders seeking high growth out of the company. Shares are up 9.54%.

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Krispy Kreme Doughnuts Inc. Earnings Cheat Sheet

Results: Adjusted Earnings Per Share increased 42.86% to $0.2 in the quarter versus EPS of $0.14 in the year-earlier quarter.

Revenue: Rose 11.18% to $120.63 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: Krispy Kreme Doughnuts Inc. reported adjusted EPS income of $0.2 per share. By that measure, the company beat the mean analyst estimate of $0.17. It beat the average revenue estimate of $115.97 million.

Quoting Management: Chairman, President and Chief Executive Officer James H. Morgan commented: “Our exceptional performance in the first quarter is a testament to both the strength of our brand and the dedication of our team members and franchisees worldwide. It is also evidence of our ongoing momentum which we believe will make this another outstanding year at Krispy Kreme. We continue to believe we are in the very early stages of developing Krispy Kreme’s long-term potential as we continue to execute on our strategic priorities, demonstrate our capability to grow same store sales, generate significant operating cash flow, and increase earnings over the long term. While our same store sales numbers over the next three quarters are likely to be less dramatic as we come up against our outstanding comp performance last year, we are confident in our belief that we can deliver strong and sustainable financial returns for our shareholders. We are, therefore, pleased to raise our annual outlook for fiscal 2014 adjusted earnings from between $0.53 and $0.57 to between $0.59 and $0.63 per share. We look forward to reporting our ongoing results as fiscal 2014 progresses.”

Key Stats (on next page)…

Revenue decreased 0% from $0 in the previous quarter. EPS increased 122.22% from $0.09 in the previous quarter.

Looking Forward: Analysts have a neutral outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings is a profit of $0.14 and has not changed. For the current year, the average estimate is a profit of $0.58, which is the same with that ninety days ago.

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(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at] wallstcheatsheet.com)

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