By Taye Obateru
With adjusted earnings rising to $16.6 million per share from $15.8 million last year, hope for a 10 per cent growth in earnings per share brightened as Krispy Kreme Doughnuts (KKD) announced first quarter results for 2016 on June 10.
per cent to $10.7 million or $0.16 per share. Last year’s figure for the same period was $9.7 million or $0.14 per share.
He said operating income from the company’s now over one thousand shops around the world increased by 6.8 per cent while adjusted income grew by five per cent. He was optimistic of higher growth rates in the next three quarters.
According to Thompson, “our results exceeded our expectations and, in our estimation, we’re well positioned to achieve our annual outlook.”
Based on the results, the company projects full year earnings per share of at least 10 per cent and plans to extend operations to six more countries in the course of the year. In line with this, the company has adjusted full-year expected earning to between $0.080 and $0.85 from the initial $0.79 to $0.85.
The results which surpassed Wall Street estimates saw the company’s share gaining 5.75 per cent in after-hours trading session. Analysts had predicted $0.22 earnings per share for the quarter.
Reacting to the results, Roth Capital Capital Partners said it re-affirms her buying rating of KKD’s shares adding, “several initiatives now underway seem likely to generate incremental store traffic as well as increase profit margins.” It predicted sustained earning growth in the years ahead.
KKD, a Wiston-Salem, North Carolina, USA-based company is a leading branded retailer and wholesaler of doughnut, complementary beverages and other sweet treats with over four thousand employees in 24 countries.
It was listed on the New York Stock Exchange in April 2000 and rose to a 500 per cent peak in three years before running into trouble waters in 2004 when her share price crashed to less than five dollars following a financial scam. It regained some ground since 2013, rising to above 25 dollars with recent growth boosting optimism of further improvement in her fortunes by analysts.