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Krispy Kreme Posts Fat Earnings (KKD)

The world of luxury junk food (is there such a thing really?) is alive well if you look at the initial reaction in Krispy Kreme Doughnuts, Inc. (NYSE: KKD) earnings report.  The company reported earnings of $0.06 per share, up from…

By Jon C. Ogg
Published March 20, 2012, 4:28pm ET · 1 min read

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The world of luxury junk food (is there such a thing really?) is alive well if you look at the initial reaction in Krispy Kreme Doughnuts, Inc. (NYSE: KKD) earnings report.  The company reported earnings of $0.06 per share, up from $0.02 a year ago and vers Thomson Reuters estimates of $0.06 per share.  Sales were up over 10% to $101.9 million versus estimates of $101.3 million.

Shares are moving higher on guidance.  The company now puts its 2013 earnings outlook in a range of $0.35 to $0.41 per share against Thomson Reuters estimates of about $0.35 per share.

The company also ended its last quarter with system wide stores of 694 stores and sees opening 5 to 10 domestic stores and about 75 international franchises over the next year.

Shares rose 1.5% today to $8.49 at the close and the after-hours session has shares up over 4% at $8.85.  The company’s 52-week trading range is $5.10 to $10.08.  As of Tuesday’s close, Krispy Kreme was worth about $578 million.  At the mid-point of the range for the coming year, Krispy Kreme trades at about 22-times expected earnings.

JON C. OGG

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Jon C. Ogg

Jon Ogg has been a financial news analyst since 1997. Mr. Ogg set up one of the first audio squawk box services for traders called TTN, which he sold in 2003. He has previously worked as a licensed broker to some of the top U.S. and E.U. financial institutions, managed capital, and has raised private capital at the seed and venture stage. He has lived in Copenhagen, Denmark, as well as New York and Chicago, and he now lives in Houston, Texas. Jon received a Bachelor of Business Administration in finance at University of Houston in 1992. www.247wallst.com.

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