Krispy Kreme Doughnuts, Inc. Earnings: Tops Analysts’ Expectations

Krispy Kreme Doughnuts, Inc. (NYSE:KKD) reported net income above Wall Street’s expectations for the second quarter. Krispy Kreme Doughnuts, Inc. and its subsidiaries are engaged in the sale of doughnuts and related items through Company-owned stores.

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Krispy Kreme Doughnuts Earnings Cheat Sheet for the Second Quarter

Results: Net income for Krispy Kreme Doughnuts, Inc. rose to $8.8 million (12 cents per share) vs. $2.2 million (3 cents per share) in the same quarter a year earlier. This is a more than fourfold rise from the year earlier quarter.

Revenue: Rose 11.4% to $98 million from the year earlier quarter.

Actual vs. Wall St. Expectations: KKD‘s adjusted income of 6 cents per share met the mean analyst estimate. It beat the average revenue estimate of $92.3 million.

Quoting Management: James H. Morgan, President and Chief Executive Officer, commented: “Our second quarter performance was the best of any second quarter since fiscal 2005 and reflects the progress we’ve made in executing our strategic plans. We generated double-digit revenue growth in each of our business segments, doubled earnings per share excluding a nonrecurring gain of $0.06, and expanded the Krispy Kreme system with a net 17 new stores. Moreover, our results were generated in the face of higher agricultural commodity prices, extreme temperatures, and much higher gas prices compared to the year ago period.”

Key Stats:

Revenue has risen the past four quarters. Revenue increased 13.6% to $104.6 million in the first quarter. The figure rose 5.7% in the fourth quarter of the last fiscal year from the year earlier and climbed 7.9% in the third quarter of the last fiscal year from the year-ago quarter.

The quarter snapped two consecutive quarters in which the company beat estimates. In the first quarter, it topped expectations with net income of 13 cents versus a mean estimate of net income of 9 cents per share.

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).

Investing Insights: Steve Jobs Prepares to Deliver a New Catalyst for Apple’s Stock.

(Source: Xignite Financials)