Krispy Kreme gets crushed after earnings
Lackluster quarterly revenue and a profit miss send the stock down by 14%.
By Burke Speaker
Krispy Kreme (KKD) stock suffered a significant drop Tuesday after the company reported lower-than-expected quarterly profits and revenue, forcing executives to lower their full-year guidance.
Krispy Kreme reported $121.6 million in first-quarter revenue, up 0.8 percent year over year but shy of analyst expectations of $126.5 million.
On an unadjusted basis, net income was $9.7 million (14 cents per share), up from $8 million from a year earlier. Adjusted earnings were up 12 percent to $15.8 million, or 23 cents per share, which was 1 cent below the Street consensus.
That had the stock sliding more than 14 percent by midday Tuesday.
Krispy Kreme chairman James Morgan blamed a tough winter for the results.
"Severe winter weather adversely affected both on-premises and wholesale sales throughout our company store base in the Southeast, and contributed to a 1.5 percent decline in same-store sales at company shops against a very tough 12.2 percent same-store sales gain in the first quarter last year," Morgan said. "Our domestic franchisees, however, who were less affected by weather, posted a gain in same store sales of 4.5 percent on top of an 11.8 percent rise in the first quarter last year."
The biggest worry moving forward, however, is not the cool sales, but the company's outlook for the year.
Krispy Kreme lowered its earnings outlook for the full year to a range of $48 million to $51 million from $51 million to $55 million, blaming several factors including compensation, new technology and an "unfavorable variance to expected results in the first quarter.
KKD shares are down 14 percent this year.
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I will not pay $7.00 for these donuts, even if half the money goes to a school or church. This is their downfall. While many schools and churches have throughout the years in the South used Krispy Kreme as a fund raiser, their prices continue to go up. Who can earn funds by selling something that last week was @2.50 and the today is $7.00?
Now you see why man people have turned from selling donuts for a fundraiser. Also, why buy as a fundraiser when Wal Mart carries the same item for less?
Well, since they finally realize they can't blame Bush for everything, It must be the weather!
Yep, It's global warming's fault!
After reading about half the comments, I had to go out and get another piece of Cake that I had just baked and the wife frosted...
Hell I got two pieces, don't want to waddle out there twice...Burns too many calories, and that will just make me hungry ;)
Another signal that the US has NO economy thanks to Bozo and friends.
If you want to be able to afford a doughnut vote out lying Democrats in November!!!
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