Investors, cheered by an optimistic forecast, are sweet on Krispy Kreme Doughnuts Inc., pushing the treat-maker's stock to its highest level in more than eight years.
On Friday, the Winston-Salem, N.C., company watched its stock soar to $17.74 a share during the day – the highest intraday level since mid-2004.
So far this year, the stock is up more than 50%, as the company works to promote doughnut consumption at all hours of the day, expand its beverage options and build out its social media presence.
Friday's stock surge came after the doughnut maker predicted higher-than-expected profit for the current fiscal year. Earnings per share will be 63 cents, up from the previously anticipated 57 cents, the company said. Net income will fall between $42 million and $45 million – a $5-million boost on both ends from earlier expectations.
Earnings for the first quarter, which ended May 5, were also promising. Same-store sales at stores open at least a year were up 11.4% in the 18th straight quarterly increase for the gauge.
Revenue alsoo rose 11.2% to $120.6 million. Net income increased to $8 million, or 11 cents a share, from $6 million, or 8 cents a share during the same period a year earlier.
Krispy Kreme has 770 shops around the world. Earlier this year, the company said it plans to have 1,300 locations by 2017.
The chain has also rolled out a new store model, which it dubbed "small free-standing factory shops," which only serve retail customers. Most Krispy Kreme stores also bake goods for grocery and convenience stores.