Krispy Kreme's strongest quarterly profits in years

By Bizclik Editor


Shares of Krispy Kreme (KKD) jumped nearly 17 percent after the company revealed its strongest quarterly profit in seven years, beating Wall Street estimates tenfold as sales continue to beat out higher commodity costs. Krispy Kreme posted net income of $9.2 million, or 13 cents a share, compared with $4.5 million, or 6 cents a share, in the same quarter last year.

Revenues for the three months ended May 1 was $104.6 million, up 13.6 percent from $92.1 million a year ago.

“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,” Krispy Kreme CEO James Morgan said in a statement. “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.”

See top stories in the WDM Content Network:

The company stores segment made for a substantial factor in the financial growth making for up to 11.1 percent to $62.5 million, along with lower impairment charges and lease termination costs, according to Fox Business. Same store sales rose 5.8 percent, marking the company’s tenth consecutive quarterly increase, while price increases helped to offset higher input costs.

The U.S. franchises weren’t the only ones to benefit. International stores climbed 18.4 percent to $5.6 million.



Featured Articles

Amelia DeLuca, CSO at Delta Air Lines on Female Leadership

Driving decarbonisation at Delta Air Lines, Chief Sustainability Officer Amelia DeLuca discusses the rise of the CSO and value of more women in leadership

Liz Elting – Driving Equality & Building Billion-$ Business

Founder and CEO Liz Elting Turned Her Passion into Purpose and Created a Billion-Dollar Business While Fighting for Workplace Equality – and Winning

JPMorgan Chase: Committed to supporting the next generation

JPMorgan has unveiled a host of new and expanded philanthropic activities totalling US$3.5 million to support the development of apprenticeship programmes

How efficient digital ecosystems became business critical

Technology & AI

Mastercard: Supporting clients at a time of rapid evolution

Digital Strategy

Why Ceridian has boldly rebranded to Dayforce

Human Capital