Krispy Kreme Posts Big Rise in Earnings

Krispy Kreme Doughnuts Inc. reported an 89% jump in earnings for its fiscal first quarter and said the future looks bright for the rapidly expanding chain. The news sent Krispy Kreme shares up $7, or 14%, to a 52-week high of $56.40 on their last day of trading on Nasdaq. The company, which had one of the strongest initial public offerings on Wall Street last year, begins trading on the New York Stock Exchange today under ticker symbol KKD.

Krispy Kreme’s profit rose to $5.7 million, or 20 cents a share, in the quarter ended April 29, beating analysts’ forecast of 17 cents. Sales grew 36% to $140.4 million, with sales at company-owned stores up 19% and franchise store sales up 52%.

Krispy Kreme raised its profit outlook for fiscal 2002 to 77 cents a share from the previous consensus of 69 cents and boosted expectations for fiscal 2003 to $1, up from the previous estimate of 86 cents.

The Winston-Salem, N.C.-based company also said it will open 38 new stores in fiscal 2002, two more than previously announced.