Krispy Kreme Shares Plunge on Outlook Cut, Results Miss

Krispy Kreme Doughnuts lowered its guidance for the current year to reflect softer-than-expected performance in its consumer packaged goods category and negative derivatives impacts as the doughnut chain reported weaker-than-expected results for the latest quarter.

Shares fell 16% to $14.90 in recent after-hours trading.

For the year ending in January, the Winston-Salem, N.C.-based doughnut chain now expects per-share earnings estimate of 76 cents to 80 cents, compared with its previous estimate for per-share profit of 80 cents to 85 cents.

"Systemwide domestic same-store sales were strong, increasing 5.5%, and both company stores same-store sales and traffic were positive for the quarter," Chief Executive Anthony Thompson said in prepared remarks Wednesday. He noted that company stores' profitability was hurt by worse-than-expected performance in the consumer packaged goods category.

However, international sales at stores open at least 18 months declined 2.7% excluding currency impacts.

Krispy Kreme has continued its expansion push abroad. More nearly 73% of its locations are now outside of the U.S., compared with roughly 70% a year earlier.

Over all, systemwide store count increased 18% from a year earlier to 1,045 company-owned and franchised shops.

For the period ended Aug. 2, Krispy Kreme reported a profit of $5.9 million, or 9 cents a share, up from $5.8 million, or 8 cents a share, a year earlier. Excluding deferred tax provisions and other items, per-share earnings rose to 15 cents from 13 cents. Revenue increased 5.7% to $127.3 million.

Analysts polled by Thomson Reuters expected per-share profit of 19 cents and revenue of $132 million.

Write to Tess Stynes at tess.stynes@wsj.com