Traffic turned positive in the second quarter for Krispy Kreme Doughnuts Inc., which reported Tuesday a 23-percent increase in net income for the quarter.
Company locations reported a same-store sales increase of 1.1 percent, which included a 0.8-percent increase in guest count, officials said.
“A key priority going into the quarter was to regain top-line momentum in our company shops, and we did, by very strategically using promotional incentives and other marketing tools to increase traffic count and top-line growth,” said Krispy Kreme president and chief executive Tony Thompson.
“Our company and domestic franchise shops posted same-store sales gains of 1.1 percent and 3.8 percent, respectively, on top of double-digit growth in the second quarter last year,” Thompson added. “On a two-year stacked basis, same-store sales rose 11.6 percent at company stores and 15.8 percent at domestic franchise shops, enabling us to significantly outperform most, if not all, of our quick-service restaurant peers.”
Thompson pledged to capitalize on momentum by creating more “everyday doughnut use occasions” and continuing to expand the chain’s beverage program with ready-to-drink coffees, K-Cups and other branded drinks.
Winston-Salem, N.C.-based Krispy Kreme ended the Aug. 3-ended second quarter with 884 units worldwide, including 103 company-operated locations, 160 domestic franchised units and 621 international franchise locations.
2Q NET INCOME
Result: $5.8 million, or 8 cents per share% Increase: 23% (from $4.7 million, or 7 cents per share)
2Q REVENUE
Result: $120.5 million% Increase: 6.9% (from $112.7 million)
2Q SAME-STORE SALES
% Increase U.S. systemwide units: 2.8%
% Increase U.S. corporate units: 1.1%
% Increase U.S. franchised units: 3.8%
% Decrease international franchised units: 2.4%
Source: Company report
RELATED:
• Krispy Kreme 1Q profit rises 21.3%
• Krispy Kreme plans to accelerate unit growth
• More restaurant finance news
Contact Lisa Jennings at [email protected].
Follow her on Twitter: @livetodineout