Published December 01, 2010
Krispy Kreme Doughnuts Inc. (KKD) weighed in with an unexpected third-quarter profit on Wednesday, topping expectations and sending shares nearly 4.0% higher in after- hours trading.
The company saw a third-quarter profit of $2.4 million, or 3 cents a share, up from a loss of $2.4 million, or 4 cents a share, during the same period a year ago.
Revenue rose 7.9% to $90.2 million, up from year-ago sales of $83.6 million.
The results were well ahead of estimates, as analysts had predicted the company would report a loss of a penny per share on revenue of $89 million.
"We delivered a strong performance in the third quarter, characterized by revenue growth, a significant increase in consolidated operating income, and a positive bottom line for the fourth consecutive quarter,” said Jim Morgan, the company's president and CEO, in a release. “Higher sales by Company and franchise shops drove profit improvements in the KK Supply Chain segment, and our International Franchise business continued to exceed our expectations.”
The doughnut chain also boosted its full-year forecast for operating income to between $17 million and $20 million, up from the previous forecast for earnings between $13 million and $17 million.
Shares of Krispy Kreme rose 17 cents, or 2.9%, on Wednesday, closing the day at $6.16 a share. The stock rallied another 24 cents, or 3.9%, in electronic trading after the market closed.