After exceeding first-quarter expectations, Krispy Kreme Doughnuts, Inc. said it is raising its fiscal 2014 outlook for adjusted net income to between $42 million and $45 million from its previous forecast of between $37 million and $40 million.
For the first quarter of fiscal 2014, ended May 5, the company had net income of $7,999,000, equal to 12c earnings per share on the common stock, up from $6,026,000, or 9c per share, during the same quarter a year before.
Revenues for the quarter rose 11% to $120,625,000 from $108,496,000 during the prior-year period. Company same-store sales rose more than 11%, marking the 18th consecutive quarterly increase. Operating income increased 40% to $15,184,000 from $10,834,000 during the first quarter of fiscal 2013.
“Our exceptional performance in the first quarter is a testament to both the strength of our brand and the dedication of our team members and franchisees worldwide,” said James H. Morgan, chairman, president and chief executive officer. “It is also evidence of our ongoing momentum, which we believe will make this another outstanding year at Krispy Kreme. We continue to believe we are in the very early stages of developing Krispy Kreme’s long-term potential as we continue to execute on our strategic priorities, demonstrate our capability to grow same-store sales, generate significant operating cash flow, and increase earnings over the long term. While our same-store sales numbers over the next three quarters are likely to be less dramatic as we come up against our outstanding comp performance last year, we are confident in our belief that we can deliver strong and sustainable financial returns for our shareholders. We are, therefore, pleased to raise our annual outlook for fiscal 2014 adjusted earnings from between 53c and 57c to between 59c and 63c per share. We look forward to reporting our ongoing results as fiscal 2014 progresses."
