WINSTON-SALEM, N.C. — Krispy Kreme posted its best second-quarter results since fiscal 2005, as net income in the period ended July 31 rose sharply to $8,839,000, equal to 13c per share on the common stock, up from $2,207,000, or 3c per share, in the same period a year ago. The most recent quarterly results benefited from an after-tax gain of $4.7 million on the sale of the company’s equity interest in its Mexican franchisee, KK Mexico.
Revenues rose 11% to $97,952,000 from $87,932,000.

“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,” said James H. Morgan, president and chief executive officer. “We generated double-digit revenue growth in each of our business segments, doubled earnings per share excluding a nonrecurring gain of 6c, 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.”

Mr. Morgan said Krispy Kreme was reaffirming its fiscal 2012 outlook for consolidated operating income, exclusive of impairment charges and lease termination costs, of between $22 million and $24 million.

“We continue to believe the high end of this range is achievable and look forward to building on our recent momentum as we move toward calendar 2012,” he said.

For the six months ended July 31, net income was $18,010,000, or 26c per share, up 170% from $6,675,000, or 10c per share, in the same period of fiscal 2011. Revenues totaled $202,552,000, up 12% from $180,049,000.