WSJ article on today's KREM earnings.
March 8, 2001
Krispy Kreme Doughnuts' Profit
More Than Triples in 4th Period
A WSJ.COM News Roundup
WINSTON-SALEM, N.C. -- Krispy Kreme Doughnuts Inc.'s fiscal
fourth-quarter profit more than tripled, boosted by a 39% increase in revenue.
Looking forward, Krispy Kreme expects
first-quarter earnings of 34 cents a share
and a same-store sales increase in the
mid-single digits before a 2-for-1 stock split
takes effect. The outlook was roughly in line
with Wall Street's expectations.
The doughnut seller, which launched one of
the highest-profile initial public offerings of
2000, Thursday reported net income of $4.2
million, or 30 cents a share, for the period
ended Jan. 28, compared with $1.2 million,
or 11 cents a share, a year earlier.
Analysts expected Krispy Kreme to earn 25
cents a share in the latest quarter, according
to First Call/Thomson Financial.
Per-share results are on a presplit basis. In
February, the company declared a 2-for-1 stock
split in the form of a dividend payable March 19
to shareholders of record on March 5. Including
the effect of the stock split, the company said it
earned 15 cents a share on 28.3 million shares
outstanding, compared with six cents a share on
20.3 million shares outstanding a year earlier.
Revenue, which includes sales from company
stores, franchise operations, and its manufacturing and distribution unit,
jumped to $81.8 million from $58.7 million.
Krispy Kreme's same-store sales, or sales at stores open at least a year,
climbed about 21%. Company-store sales jumped about 33% to $57.1 million.
For the full year, the company's net income more than doubled to $14.7
million, or $1.10 a share, easily topping analysts' estimates of $1.05 a share,
according to a survey by First Call/Thomson Financial. Revenue for fiscal
2001 increased 37% to $300.7 million.
For fiscal 2002, the company raised its earnings expectations to $1.38 a share,
consistent with its long-term business model, which calls for 25% annual
earnings growth, 20% revenue growth and mid-single digit same-store sales
growth on a presplit basis.
In November, the company projected fiscal 2002 earnings of $1.30 a share,
compared with analysts' estimates of $1.25 a share at the time.
Analysts currently expect the company to post earnings of 33 cents a share for
the first quarter and $1.31 a share for fiscal 2002, according to First
Call/Thomson Financial. In the year-earlier quarter, the company reported net
income of $3.1 million, or 27 cents a share, on revenue of $71 million.
Krispy Kreme, which operates 177 stores in 28 states, opened 11 new stores
during the latest quarter and two additional franchise stores after the quarter
ended.
The doughnut seller announced Wednesday that its stock will begin trading on
the New York Stock Exchange on May 17 under the ticker symbol "KK." It
has traded on the Nasdaq National Market under the ticket symbol "KREM"
since its April 5 IPO.
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