Doughnuts Inc. said Tuesday that its net income rose 26 percent in the fourth quarter ended Jan. 31, as the chain’s same-store sales continued to grow.
Systemwide same-store sales rose 1.6 percent in the quarter and 3.9 percent for the year. Company same-store sales rose 2.4 percent for the year, the seventh straight year of growth.
The chain's same-store sales didn't meet Wall Street expectations, and the stock was down 6 percent after hours.
Net income was $8.2 million in the fourth quarter, or 13 cents per share, rising from $6.5 million, or 10 cents per share, in the same period a year ago. Adjusted earnings rose 14 percent, to 22 cents per share, from 17 cents per share.
“We are pleased with continued growth of the Krispy Kreme brand throughout fiscal 2016,” Krispy Kreme CEO Tony Thompson said in a statement. He noted that the company’s worldwide unit count grew 14 percent last year, to more than 1,100 locations.
“We remain excited about our brand’s long-term potential and believe we are well positioned to drive earnings and cash flow growth in the future,” Thompson said.
Revenues in the quarter increased 4 percent, to $130.4 million, from $125.4 million the previous year. International franchise same-store sales took a hit in the quarter, declining 7.1 percent.
For the year, revenues increased 5.8 percent, to $518.7 million, from $490.3 million.
The company expects to open 30 new domestic units, along with 120 to 140 international locations. It also expects flat commodity costs offset by higher labor costs.