WINSTON-SALEM, N.C. — Krispy Kreme Doughnuts Inc. saw a 2.1 percent rise in company-owned same-store sales and reported profit decrease of 52.5 percent for the first quarter ended May 3, the company has announced. The increase in comps follows a gain of 0.9 percent in the prior quarter.
The number of off-premises locations where Krispy Kreme donuts are sold were down 9.4 percent compared to a decline of 6.7 percent in the same period last year. Average weekly sales at those locations were down 1.2 percent, an improvement over the same period last year, which were down 8.6 percent.
Revenues for the quarter were down 9.8 percent at $93.4 million compared to $103.6 million in the same period last year.
Net income for the quarter was $1.9 million compared to $4.0 million in the same period last year.
"We continue to make progress in executing our strategic plans," said Jim Morgan, Krispy Kreme chairman, president and CEO. "While we are pleased with the improvement in our operating results for the quarter, we are not satisfied with them, and we remain focused on rebuilding the company for the long term."
First quarter accomplishments include:
- Introduction of the Kool Kreme soft serve product into two additional company stores, bringing the product test to a total of five company stores, with two more scheduled to be added later this month
- Received letters of intent for three more small retail concept shops planned to open in the coming months in the Raleigh, N.C., Louisville, Ky., and Columbia, S.C., metropolitan areas
- Completed development of the company's first baked goods menu items to begin testing in stores this fall, including bagels, muffins, cinnamon and pecan rolls and Danish pastries
- Opened the first Krispy Kreme store in Malaysia in Kuala Lumpur, the first of 20 the Malaysian franchisee plans to open in the market over the next five years
In addition, the company has increased its marketing in preparation for the traditionally slower summer months, focusing on mini doughnuts, iced beverages and Kool Kreme soft serve product with its complementary fresh fruit bar.
Conference call
Management will host a conference call to review first quarter results today at 4:30 p.m. Eastern time. A live webcast of the conference call will be available at www.KrispyKreme.com. To access an archived audio replay of the call, dial (888) 203-1112 and enter the passcode 3624608. International callers may access the replay by dialing (719) 457-0820 and entering passcode 3624608. The audio replay will be available through June 11, 2009.
