News

Krispy Kreme reports revenue increase

September 2, 2010

Krispy Kreme Doughnuts, Inc. has reported its second quarter financial results for fiscal 2011, which include a revenue increase of 6.3 percent.

The company's revenue was reported at $87.9 million, compared to $82.7 million from second quarter 2010.

Krispy Kreme also raised its earnings outlook for fiscal 2011 as a whole.

The company ended the quarter with 633 total stores, a net increase of 17 units. There are now 84 company stores and 549 franchise locations.

Other second quarter highlights include:

• Excluding the effects of refranchising company stores, revenues rose 8.2 percent, compared to 2010
• Company same-store sales increased 5.7 percent for the seventh consecutive quarter
• Operating income rose 41.2 percent, to $4.2 million from $2.9 million
• Net income worth $2.2 million, or $0.03 per share diluted, versus last year's 2Q net loss of $157,000, or nil per share.

"Our financial results improved from the year ago period, as we realized revenue growth in all business segments, increased our consolidated operating income by roughly half, and delivered positive net income for the third consecutive quarter. We are encouraged by the same store sales momentum at company stores, but also recognize that we must strengthen our execution so that top-line performance can more directly impact bottom-line profitability," said Jim Morgan, Krispy Kreme's president and CEO.