Krispy Kreme's (KKD) Q2 Results Demonstrate a Global Addiction to Donuts
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Krispy Kreme Doughnuts, Inc. (NYSE: KKD) Thursday reported financial results for the second quarter of fiscal 2012, ended July 31, 2011.
Revenue for the quarter rose 11.4 percent from $87.9 million to $98 million. The number was ahead of the consensus of $92.26 million. Domestic franchise revenue increased 13.3 percent to $2.3 million while International franchise revenues increased 33.5 percent to $5.4 million.
The company’s same-store sales rose 2.5 percent, which is the eleventh consecutive quarterly increase.
Operating income rose 18.8 percent from $4.2 million to $4.9 million.
Net income was $8.8 million or $0.12 per share diluted, up tremendously from $2.2 million or $0.03 per share diluted in the second quarter last year. Adjusted EPS for the quarter was $0.06; this quarter included the sale of the Company's equity interest in its Mexican franchisee of $4.7 million after tax.
Cash provided by operating activities was $7.6 million compared to $3.7 million in the second quarter last year. The company ended the quarter with $32.32 million in cash and cash equivalents, up from only $21.97 million at the end of January 2011.
Krispy Kreme added 17 new shops over the quarter making the total 88 Company stores and 581 franchise locations.
James H. Morgan, President and Chief Executive Officer, commented: "Our second quarter performance was the best of any second quarter since fiscal 2005 and reflects the progress we've made in executing our strategic plans. We generated double-digit revenue growth in each of our business segments, doubled earnings per share excluding a nonrecurring gain of $0.06, and expanded the Krispy Kreme system with a net 17 new stores. Moreover, our results were generated in the face of higher agricultural commodity prices, extreme temperatures, and much higher gas prices compared to the year ago period. Based upon our year-to-date financial performance, we are very pleased to be reiterating our annual outlook for fiscal 2012 consolidated operating income, exclusive of impairment charges and lease termination costs, of between $22 million and $24 million. We continue to believe the high end of this range is achievable and look forward to building on our recent momentum as we move toward calendar 2012."
Krispy Kreme shares are up about 2 percent in the after-hours session.
Revenue for the quarter rose 11.4 percent from $87.9 million to $98 million. The number was ahead of the consensus of $92.26 million. Domestic franchise revenue increased 13.3 percent to $2.3 million while International franchise revenues increased 33.5 percent to $5.4 million.
The company’s same-store sales rose 2.5 percent, which is the eleventh consecutive quarterly increase.
Operating income rose 18.8 percent from $4.2 million to $4.9 million.
Net income was $8.8 million or $0.12 per share diluted, up tremendously from $2.2 million or $0.03 per share diluted in the second quarter last year. Adjusted EPS for the quarter was $0.06; this quarter included the sale of the Company's equity interest in its Mexican franchisee of $4.7 million after tax.
Cash provided by operating activities was $7.6 million compared to $3.7 million in the second quarter last year. The company ended the quarter with $32.32 million in cash and cash equivalents, up from only $21.97 million at the end of January 2011.
Krispy Kreme added 17 new shops over the quarter making the total 88 Company stores and 581 franchise locations.
James H. Morgan, President and Chief Executive Officer, commented: "Our second quarter performance was the best of any second quarter since fiscal 2005 and reflects the progress we've made in executing our strategic plans. We generated double-digit revenue growth in each of our business segments, doubled earnings per share excluding a nonrecurring gain of $0.06, and expanded the Krispy Kreme system with a net 17 new stores. Moreover, our results were generated in the face of higher agricultural commodity prices, extreme temperatures, and much higher gas prices compared to the year ago period. Based upon our year-to-date financial performance, we are very pleased to be reiterating our annual outlook for fiscal 2012 consolidated operating income, exclusive of impairment charges and lease termination costs, of between $22 million and $24 million. We continue to believe the high end of this range is achievable and look forward to building on our recent momentum as we move toward calendar 2012."
Krispy Kreme shares are up about 2 percent in the after-hours session.
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