Krispy Kreme Doughnuts Inc. said its profit more than doubled in the first quarter on positive sales trends and lower expenses.
For the May 1-ended quarter, Krispy Kreme’s net income totaled $9.2 million, or 13 cents per share, which the company described as its best quarterly profit since 2004. The company earned $4.5 million, or 6 cents per share, in last year’s first quarter, when it booked higher impairment charges and interest expense.
Revenue in the latest quarter rose 13.6 percent to $104.6 million from $92.1 million a year ago, Krispy Kreme said. Corporate same-store sales were up 5.8 percent in the quarter, which the company said marked the 10th consecutive quarter of positive results. Same-store sales increased 4.6 percent at domestic franchised locations.
“While commodity costs created some headwinds, and will continue to do so for the remainder of the year, we believe we are off to a good start in fiscal 2012,” James H. Morgan, Krispy Kreme’s president and chief executive, said in a statement Monday.
Krispy Kreme said it raised prices in the first quarter to offset higher commodity costs but that customer traffic remained positive. Guest counts were up 2.9 percent in corporate stores in the quarter, the company said.
While domestic sales were up, Krispy Kreme said international franchised same-store sales declined 9.6 percent, when adjusted for changes in foreign exchange rates. The company cited “honeymoon effects” from the opening of 300 new international stores in three years and some market cannibalization.
EARLIER: Krispy Kreme sees recovery in U.S., but challenges abroad
The Winston-Salem, N.C.-based Krispy Kreme opened six net restaurants in the first quarter, ending the period with 652 locations, which included 86 corporate units and 566 franchised branches.
Contact Molly Gise at [email protected].
