Double-digit sales gain boosts Krispy Kreme net
by Eric Schroeder
WINSTON-SALEM, N.C. — Double-digit revenue growth helped drive a sharp gain in earnings at Krispy Kreme Doughnuts, Inc. in the first quarter. Net income in the quarter ended May 1 totaled $9,171,000, equal to 13c per share on the common stock, up 105% from $4,468,000, or 7c per share, in the same period of fiscal 2011. Net sales rose 14% to $104,600,000 from $92,117,000.
“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,” said James H. Morgan, president and chief executive officer. “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.”