WASHINGTON (dpa-AFX) - Krispy Kreme Doughnuts Inc. (KKD) Monday reported an increase in profit for the third quarter, driven largely by revenue growth amid improved same store sales. Earnings for the quarter came in ahead of Wall Street estimates, but revenue fell short of expectations.
Moving ahead, the company lifted the lower-end of its adjusted earnings guidance for the full year 2014. However, it provided a weak earnings outlook for 2015. Following the news, Krispy Kreme shares plunged 14 percent in after-hours trade.
Winston-Salem, North Carolina-based Krispy Kreme's third-quarter profit rose to $6.8 million or $0.09 per share from $5.0 million or $0.07 per share last year.
Excluding items, adjusted earnings for the quarter improved to $11.2 million or $0.16 per share from $8.3 million or $0.12 per share last year. On average, five analysts polled by Thomson Reuters expected earnings of $0.15 per share for the quarter. Analysts' estimates typically exclude special items.
The doughnut chain's revenue for the third quarter grew 6.7 percent to $114.2 million from $107 million last year. Four analysts expected revenues of $114.62 million for the quarter.
Same store sales, or sales from stores open at least a year, for the quarter rose 3.7 percent, the company said.
Looking ahead to fiscal 2014, the company now expects adjusted earnings of $0.60 to $0.63 per share, from prior range of $0.59 to $0.63 per share. Analysts currently expect earnings of $0.63 per share.
For fiscal 2015, the company expects adjusted earnings of $0.71 to $0.76 per share. Analysts currently estimate earnings of $0.77 per share.
KKD closed Monday's trading at $24.55, down $0.83 or 3.27%, on the NYSE. The stock further dropped $3.37 or 13.73% in after-hours trade.
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