Krispy Kreme Doughnuts, Inc.
(Nasdaq: KREM) reported August 24 financial results for the three months ended July 30, 2000, the company's second quarter of fiscal 2001.
Systemwide sales, including sales of both company and franchise stores, increased 39.7% to $107.7 million in the second quarter, compared with $77.1 million in the second quarter of fiscal 2000. Sales were driven by an increase in company store sales of 31.9% to $51.5 million and an increase in franchise store sales of 47.8% to $56.2 million. On a comparable store basis, systemwide store sales increased 19.4% and company store sales increased 24.4%. All of these results exceeded earlier projections.
Total company revenues, which include sales from company stores, franchise fees and royalties, and support operations sales, rose 36.3% to $70.0 million in the second quarter, compared with $51.4 million in the second quarter of fiscal 2000. Sales from company stores increased 31.9% to $51.5 million; revenues from franchise fees and royalties increased 84.3% to $2.3 million; and support operations sales increased 46.4% to $16.2 million.
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.
Total company revenues rose 34.7% to $141.0 million in the first six months of the year compared with $104.7 million in the same period of the prior year. Sales from company stores increased 28.7% to $102.4 million; revenues from franchise fees and royalties increased 86.1% to $4.3 million; and support operations sales increased 50.5% to $34.3 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.
Commenting on the second quarter results, Scott Livengood, Chairman, President and CEO of Krispy Kreme Doughnuts, said: "We are very pleased with our second quarter performance. It is gratifying that these excellent results were geographically broad based and across all sales channels. Our national expansion is also going extremely well, both in terms of store openings and the strong sales being achieved in these new markets.''
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.