Krispy Kreme doughnuts
Krispy Kreme is out with its first quarter earnings report, and the stock is getting crushed, falling as much as 10% in the after hours.
For the quarter, Krispy Kreme's profit and sales both missed expectations.
Krispy Kreme reported profit of $0.14 per share, short of the $0.23 analysts were expecting, according to data from Yahoo Finance.
In the first quarter, Krispy Kreme's revenue grew 0.8% to $121.58 million on domestic same-store sales that rose 2.3%.
The doughnut and coffee shop also cut its full year earnings outlook. Krispy Kreme now expects to earn $0.69 to $0.74 per share, down from expectations for earnings of $0.73 to $0.79.
In its earnings press release, Krispy Kreme's executive chairman James Morgan said:
"[S]evere winter weather adversely affected both on-premises and wholesale sales throughout our Company store base in the Southeast, and contributed to a 1.5% decline in same store sales at Company shops against a very tough 12.2% same store sales gain in the first quarter last year. Notwithstanding the increase in first quarter earnings, we are revising our full-year outlook but still projecting a double-digit increase in adjusted earnings per share. The change reflects, among other things, our first quarter performance, higher than anticipated investment in a new enterprise resource planning system and higher costs than we had planned associated with executive management succession."
The company announced in May that Morgan would transition out of the CEO role to be succeeded by Anthony "Tony" Thompson, effective June 1.
This is the second time in three quarters that the stock has fallen sharply following an earnings report.
In December, Krispy Kreme shares lost more than 15% after giving an full-year outlook that disappointed.
Its been a wild ride for Krispy Kreme investors since the start of 2013.
Excluding today's after hours losses, Krispy Kreme shares have roughly doubled since the start of 2013.
But since closing north of $26 in November 2013, the stock is down more than 30%.
In after hours trade, Krispy Kreme shares are trading just above $17.
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