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.
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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.
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