Krispy Kreme's Stock Drops After Sales Miss, Downbeat Profit Outlook

Shares of Krispy Kreme Doughnuts Inc. dropped 3.5% in after-hours trade Tuesday, after the doughnut seller missed fiscal fourth-quarter sales expectations and provided a downbeat profit outlook for the next year. For the quarter ended Jan. 31, earnings rose to $8.2 million, or 13 cents a share, from $6.5 million, or 10 cents a share, in the same period a year ago. Excluding non-recurring items, adjusted earnings per share were 22 cents, beating the FactSet consensus of 20 cents. Revenue rose 4% to $130.4 million, but missed expectations of $131.4 million. The 1.6% increase in domestic same-store sales fell short of expectations of 2.9% growth. For the current fiscal year, the company expects adjusted EPS of 87 cents to 91 cents, below the FactSet consensus of 92 cents. The company increased its stock repurchase program by $100 million. The stock has climbed 2.1% year to date through Tuesday's close, while the S&P 500 has tacked o 0.3%.