Krispy Kreme Reports 65% Jump in Profit
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Krispy Kreme Doughnuts Inc. reported a 65% jump in quarterly profit and boosted its expectations for annual profit.
The doughnut chain said earnings in its fiscal second quarter rose to $5.9 million, or 10 cents a share, a penny better than analyst expectations, from $3.6 million, or 6 cents, a year ago, as it added more stores. Sales grew 34% to $144.3 million. Sales at stores open at least a year rose 13%, compared with a 19% rise in the year-earlier quarter.
The company plans to open 40 stores this year, an increase from the 38 previously planned.
The Winston-Salem, N.C.-based company said it now expects full-year earnings of 42 cents a share, 2 cents more than the average estimate of analysts polled by Thomson Financial/First Call. For the following year, it expects earnings of 59 cents, 9 cents more than analysts’ forecasts.
Shares of Krispy Kreme fell $2.87, or 8.2%, to close at $32.11 on the New York Stock Exchange. The shares have more than doubled since their first day of trading in April 2000.
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