The company released its second quarter financials for the fiscal year 2015 after the markets closed yesterday.
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The company also lowered its full year outlook due to “softer-than-expected performance of its consumer pakcaged goods”.
Also, the KKD board increased current share repurchase authorization during the quarter to $155M from $105M. “We feel its strengths outweigh the fact that the company has had somewhat disappointing return on equity”. The company had revenue of $127.30 million for the quarter, compared to analysts’ expectations of $61.58 million. Revs however, increased 8.96% year-over-year to $132.5 million versus the $121.6 million reported.
Winston-Salem, North Carolina-based Krispy Kreme’s second-quarter profit rose to $5.9 million or $0.09 per share from $5.8 million or $0.08 per share a year ago.
Operating income climbed 11.6 percent to $10.7 million from $9.6 million. On a per share basis, adjusted earnings were 15 cents per share from 13 cents a year earlier.
A number of equities research analysts recently weighed in on KKD shares.
Last week, I opened a bearish put trade in Krispy Kreme Doughnuts (KKD) ahead of its earnings statement expecting the numbers to be anything but sweet.
System-wide domestic same store sales rose 5.5 percent, while constant-currency global franchise same store sales declined 2.7 percent. Excluding items, adjusted net income surged to $0.15 per share from $0.13 per share. Finally, Roth Capital restated a “buy” rating and issued a $27.00 price objective on shares of Krispy Kreme Doughnuts in a report on Friday, June 12th.
In other Krispy Kreme Doughnuts news, Director Michael H. Sutton sold 4,000 shares of Krispy Kreme Doughnuts stock in a transaction that occurred on Saturday, December 19th. Of the total cost of $34.3 million, $32.9 million have been settled so far at the conclusion of this quarter. Krispy Kreme Doughnuts updated its FY16 guidance to $0.76-0.80 EPS.
Krispy Kreme has continued its expansion push overseas. More than 73% of its stores are now located internationally.
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President and Chief Executive Officer Tony Thompson said, “We continue to be more strategic in our use of promotional incentives as we balance driving consistent same store sales growth and overall store level profitability”. He noted that company stores’ profitability was hurt by worse-than-expected performance in the consumer packaged goods category.
