Krispy Kreme sweetens outlook after upbeat 1Q

Krispy Kreme 1st-quarter sales and profits top Wall Street views, raises annual outlook

Associated Press

WINSTON-SALEM, N.C. (AP) -- Krispy Kreme Doughnuts Inc. on Thursday posted first-quarter sales and profit that topped expectations on Wall Street. It sprinkled on further good news when it raised its outlook for the remainder of the year. Its stock jumped 10 percent in after-hours trading.

Net income in the three months to May 5 rose to $8 million, or 11 cents per share, from $6 million, or 8 cents per share, a year ago.

Excluding provisions it had taken for deferred income taxes, adjusted earnings came to 20 cents per share, beating the 16 cents expected by analysts polled by FactSet.

Revenue rose 11 percent to $120.6 million, also beating the $117 million expected by analysts.

Saying the results exceeded internal forecasts and citing an "increasingly optimistic" view of the future, the company raised its guidance for full-year adjusted earnings of between 59 cents and 63 cents per share, up from 53 cents to 57 cents it had forecast earlier. Analysts had expected adjusted earnings of 55 cents for the year.

Shares rose $1.47 to $15.73 in after-hours trading following the release of results. Earlier, shares rose 5.5 percent to close the regular session at $14.26. The stock is up 52 percent so far this year.

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