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Krispy Kreme Q2 net loss narrows
September 10, 2008
WINSTON-SALEM, N.C. — Krispy Kreme Doughnuts Inc. has reported its net loss has improved for the second quarter ended Aug. 3, 2008, while same-store sales continue to fall.
Same-store on-premise sales were down 9.2 percent, compared to a decline of 1.8 percent in the same period last year. The number of off-premise locations where Krispy Kreme donuts were sold fell 8.3 percent, and average weekly sales were down 7.7 percent at those locations. At the end of the second quarter last year, the number of off-premise locations was down 1.6 percent, with average weekly sales down 6.1 percent.
Company revenues for the quarter were $94.2 million, down 9.5 percent from $104.1 million in the second quarter last year. Year-to-date revenues were $197.9 million, down 8 percent from $215 million for the same period last year.
The company incurred a net loss in the second quarter of $1.9 million, compared to a net loss of $27 million in the second quarter last year. The largest single factor affecting results for the second quarter of last year included impairment charges and lease termination costs of $22.1 million.
During the second quarter, 31 new Krispy Kreme stores were opened systemwide and seven stores were closed, bringing the total number of systemwide stores at the quarter's end to 494 — 286 factory stores and 208 satellites. All 31 new stores were opened by franchisees.
Management will host a conference call to review second quarter results Sept. 11, 2008, at 4:30 p.m. Eastern time. A live webcast of the conference call will be available at www.KrispyKreme.com/investorrelations.html. To access an archived audio replay of the call, dial (888) 286-8010 and enter the passcode 20395285. International callers may access the replay by dialing (617) 801-6888 and entering passcode 20395285. The audio replay will be available through Sept. 18, 2008.
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