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Krispy Kreme stock surges to 8-year high on promising forecast

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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.

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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.

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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.

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