Krispy Kreme Doughnuts Inc. (KKD) Thursday reported an increase in profit for the first quarter, driven mainly by revenue growth and improved same store sales. Earnings and revenues for the quarter came in ahead of Wall Street estimates.
The North Carolina-based US doughnut chain also lifted its adjusted earnings guidance for the full year 2014. Shares of Krispy Kreme surged 10 percent on the positive earnings and guidance news.
Krispy Kreme's first-quarter profit rose to $8.0 million $0.11 per share from $6.0 million or $0.08 per share last year.
Adjusted earnings rose to $0.20 per share from $0.14 per share last year. On average, six analysts polled by Thomson Reuters expected earnings of $0.17 per share for the quarter. Analysts' estimates typically exclude special items.
Krispy Kreme's revenues for the quarter grew 11.2 percent to $120.6 million from $108.5 million. Analysts estimated revenues of $115.97 million for the quarter.
The company's same store sales, or sales from stores open at least a year, for the quarter rose 11.4 percent.
Chief Executive James Morgan said, "Our exceptional performance in the first quarter is a testament to both the strength of our brand and the dedication of our team members and franchisees worldwide."
Direct operating expenses, as a percentage of revenues, fell to 80 percent from 81.7 percent, while general and administrative costs decreased to 5 percent from 6 percent.
Looking forward to the fiscal year 2014, the company lifted its adjusted earnings to between $0.59 and $0.63 per share, from prior estimate of $0.53 to $0.57 per share. Analysts currently estimate earnings of $0.58 per share for the year.
KKD closed Thursday's trading at $14.26, up $0.74 or 5.47%, on the NYSE. The stock further gained $1.54 or 10.80% in after hours trade.
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