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Krispy Kreme sees comps, loss continue to fall
December 10, 2008
WINSTON-SALEM, N.C. — Krispy Kreme Doughnuts Inc. has reported a widening net loss for the third quarter ended Nov. 2, and same-store sales declined again, the company announced.
Same-store on-premises sales were down 11.8 percent, a slight improvement from the same quarter last year when comps were down 6 percent. Year-to-date comps were down 8.3 percent.
The number of off-premises locations where Krispy Kreme doughnuts were sold fell 5.8 percent, compared to a decline of 5.7 percent last year, and were down 7 percent year to date. Sales at those off-premises locations fell 9.1 percent, compared to a decline of 7.4 percent the prior year, and were down 8.5 percent year to date.
Total revenues for the third quarter decreased 8.7 percent to $94.3 million, compared to $103.4 million in the same quarter last year. Year to date, revenues were down 8.2 percent at $292 million, compared to $318 million last year.
Krispy Kreme reported a net loss of $5.9 million for the quarter, compared to a net loss of $798,000 in the same quarter last year. Year to date, the net loss was $3.8 million, an improvement over last year in the same period when the net loss was $35.2 million.
The company attributed the quarter's results to a number of factors, including the higher cost for doughnut mix and shortening resulting from higher agricultural commodity costs compared to last year as well as the higher price of gasoline. The company expects to benefit from the recent significant decline in the price of agricultural commodities as well as see a reduction in its fuel costs in the fourth quarter due to the average price of gasoline falling below that of last year's third quarter.
Krispy Kreme will host a conference call to review third quarter results Dec. 11 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 4362219. International callers may access the replay by dialing (719) 457-0820 and entering passcode 4362219. The audio replay will be available through Dec. 18.
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