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Stock Market News : Krispy Kreme (KKD) Stock Earnings, Shares Rise

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(EMAILWIRE.COM, June 09, 2010 ) Dallas, Tx - Krispy Kreme Doughnuts Inc. (NYSE: KKD) announced its results for the first quarter of FY2011, ended May 2nd 2010. Despite a 1.4% decrease in revenues to $92.1 million from $93.4 million a year ago, earnings have doubled to $0.06 per diluted share from $0.03 reported in the first quarter of last year. Net income currently stands at $4.5 million, compared to $1.9 million during the first quarter of last year. Krispy Kreme's stock jumped 6.8% last Friday, following the Q1 results.

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The company has also recorded a 3.4% increase in same-store sales. This is the sixth consecutive quarterly increase in same-store sales. International franchise revenues jumped by nearly 23% to touch $4.8 million. This is partly due to the increased number of new stores. Operating income rose by nearly 5% to $6.1 million from $5.8 million last year. Direct operating expenses have remained flat at $77 million. As at the end of Q1, Krispy Kreme has 616 stores, 34 of which have been added since January 31, 2010 alone. CEO Jim Morgan said that the improvement in results reflects Krispy Kreme's continued progress in implementing strategic initiatives. He added that the company was looking forward to continued success with the transition, and expected shareholders to benefit in the days ahead.

Krispy Kreme has also raised the earnings outlook for FY2011 as a whole. Operating income, excluding impairment charges and lease termination cotsts, is now expected to range between $11 million to $15 million, compared to the earlier guidance of $10 million to $13 million. The company's total domestic store count is also expected to increase for the first time since 2005.

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Krispy Kreme rose 6.78% or $0.25 in Friday's trading session after the Q1 announcement that exceeded expectations. The price change was accompanied by a volume of 1,870,018 shares, which is considerably higher than the average volume of 468,171 shares. The stock opened at $3.86 and closed at $3.94. The stock has a 52-week range of $2.51-$5.15. The support level for the stock is at $3.33 and the resistance level is at $3.87.

About Krispy Kreme Doughnuts
Krispy Kreme Doughnuts is a leading branded specialty retailer and wholesaler of premium quality sweet treats and complementary products. The company was founded in 1937 and is headquartered at Winston-Salem, NC. Krispy Kreme currently operates out of 616 stores in 19 countries around the world.

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