Krispy Kreme Doughnuts (KKD) Tops Q1 EPS by 2c; Boosts FY16 EPS Midpoint Guidance

Krispy Kreme Doughnuts (NYSE: KKD) reported Q1 EPS of $0.24, $0.02 better than the analyst estimate of $0.22. Revenue for the quarter came in at $132.5 million versus the consensus estimate of $135.99 million.

Systemwide domestic same store sales rose 5.2%, including a 4.3% gain at Company Stores; constant currency international franchise same store sales declined 1.7%.

President and Chief Executive Officer Tony Thompson commented: “Solid domestic same store sales growth and improved margin performance at our Company shops enabled us to exceed our internal projections for the first quarter, providing us a strong start to the fiscal year. Guests continued to respond favorably to our limited time offerings. This, combined with our more strategic use of promotional incentives, drove the higher profitability.”

Thompson added: “We continue to generate momentum in our franchise business, partnering with new and existing franchisees to spread the joy of Krispy Kreme within the US and throughout the world. We recently signed development agreements for new domestic shops in Arkansas, Montana, Illinois and Kentucky, while internationally we signed agreements in Cambodia, Guatemala, and South Africa as part of our goal to enter a total of six new countries this year. We continue to believe that Krispy Kreme is positioned well for earnings and cash flow growth and our intention is to return a portion of that to shareholders through on-going share repurchases.”

Krispy Kreme Doughnuts sees FY16 EPS of $0.80 - $0.85, versus prior guidance of $0.79 - $0.85 and the consensus of $0.84.

For earnings history and earnings-related data on Krispy Kreme Doughnuts (KKD) click here.

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