Krispy Kreme Earnings Cheat Sheet: Beats the Street on Profit Rise

Krispy Kreme Doughnuts, Inc. (NYSE:KKD) reported net income above Wall Street’s expectations for the first 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 First Quarter

Results: Net income for Krispy Kreme Doughnuts, Inc. rose to $9.2 million (13 cents/share) vs. $4.5 million (6 cents/share) in the same quarter a year earlier. A more than twofold rise from the year earlier quarter.

Revenue: Rose 13.6% to $104.6 million YoY.

Actual vs. Wall St. Expectations: KKD beat the mean analyst estimate of 9 cents/share. Estimates ranged from 6 cents per share to 12 cents per share.

Quoting Management: James H. Morgan, President and Chief Executive Officer, commented: “We delivered a strong performance in the first quarter, characterized by double-digit revenue growth, a significant increase in consolidated operating income, and our best quarterly net profit since the fourth quarter of fiscal 2004. Substantially improved results in the Company Stores segment were a major driver of our improved results. We also benefitted from lower impairment charges and lease termination costs and a significant reduction in interest expense resulting from the January 2011 refinancing of our credit facilities. While commodity costs created some headwinds, and will continue to do so for the remainder of the year, we believe we are off to a good start in fiscal 2012. We are pleased to reaffirm our outlook for consolidated operating income, exclusive of impairment charges and lease termination costs, of between $22 million and $24 million for the year, although we believe first quarter results make the high end of that range appear increasingly achievable.”

Key Stats:

Revenue has risen the past four quarters. Revenue increased 5.7% to $91.7 million in fourth quarter of the last fiscal year. The figure rose 7.9% in third quarter of the last fiscal year from the year earlier and climbed 6.3% in second quarter of the last fiscal year from the year-ago quarter.

Competitors to Watch: Retail Food Group Limited (NYSE:RFG), Jamba, Inc. (NASDAQ:JMBA), Peet’s Coffee & Tea, Inc. (NASDAQ:PEET), Starbucks Corporation (NASDAQ:SBUX), Einstein Noah Restaurant Group, Inc. (NASDAQ:BAGL), Panera Bread Company (NASDAQ:PNRA), Caribou Coffee Co., Inc. (NASDAQ:CBOU), Peet’s Coffee & Tea, Inc. (NASDAQ:PEET), McDonald’s Corporation (NYSE:MCD), Yum! Brands, Inc. (NYSE:YUM) and Green Mountain Coffee Roasters Inc. (NASDAQ:GMCR)

Stock Performance: Shares of KKD are up 16.7% from the previous close.

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