Industry News | August 24, 2000
Krispy Kreme Announces 2Q Results, Earnings Expectations
Net income for the second quarter was $3.6 million, an increase of 265.5% compared with $1.0 million in the second quarter last year. Diluted earnings per share increased to $0.25 in the second quarter of fiscal 2001 from $0.10 per share in the prior year comparable period.
For the six months ended July 30, 2000, systemwide sales increased 40.5% to $211.1 million from $150.2 million in the same period of last year. This increase was a result of an increase in company store sales of 28.7% to $102.4 million and an increase in franchise store sales of 53.8% to $108.6 million.
Net income for the six months was $6.6 million, an increase of 130.8% compared to $2.9 million a year ago. Diluted earnings per share increased to $0.52 in the first six months of the year from $0.30 per share in the prior year.
During the quarter, six new Krispy Kreme stores (including one new commissary) were opened in Las Vegas, NV; Owings Mills, MD; Gardena, CA; Roseville, MI; Chicago, IL; and Nashville, TN bringing the total number of stores at July 30, 2000 to 154. Since the end of the quarter, Krispy Kreme has opened an additional franchise store in Houston, TX. The company increased its projected store openings for the current fiscal year from 22 to 28 new stores and expects to open 32 new stores in fiscal 2002.
As a result of continuing strong sales momentum and the raised estimate of new store openings, the company increased earnings per share expectations to $1.00 for the current fiscal year.
The 63-year-old North Carolina-based company is a leading branded specialty retailer of premium quality doughnuts, including the company's signature Hot Original Glazed. Krispy Kreme currently operates 154 stores in 27 states.
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