WASHINGTON (dpa-AFX) - Krispy Kreme Doughnuts Inc. (KKD) on Wednesday reported a drop in profit for the fourth quarter, hurt largely by higher expenses and lower-than-expected revenues, with earnings in line with Wall Street estimates. Following the news, Krispy Kreme shares tanked 6 percent in after-hours trade.
Winston-Salem, North Carolina-based Krispy Kreme's fourth-quarter profit dropped to $6.5 million or $0.10 per share from $14.8 million or $0.21 per share last year.
Adjusted earnings for the quarter rose to $0.17 per share from $0.12 per share a year ago. Analysts polled by Thomson Reuters expected earnings of $0.17 per share for the quarter. Analyst' estimates typically exclude special items.
The doughnut chain's revenue for the fourth quarter grew 11.2 percent to $125.4 million from $112.7 million a year ago. Analysts had a consensus revenue estimate of $126.78 million for the quarter.
Direct operating expenses for the quarter rose to $102.3 million from $93.3 million last year. General and administrative costs rose to $9.2 million from $7.7 million a year ago.
System-wide domestic same store sales rose 3.6 percent, while constant-currency international franchise same store sales declined 2.6 percent.
Moving ahead, the company reaffirmed its adjusted earnings outlook of $0.79 to $0.85 per share. Analysts currently expect earnings of $0.84 per share for 2016.
KKD closed Wednesday's trading at $20.35, down $0.01 or 0.05%, on the NYSE. The stock further dropped $1.05 or 5.16% in the after-hours trade.
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