Krispy Kreme Doughnuts Profit Misses Street, Cuts Outlook; Shares Down 16%

(RTTNews) - Krispy Kreme Doughnuts Inc. (KKD) on Wednesday reported an increase in profit for the second quarter, as revenues increased reflecting strong same-store sales. However, both earnings and revenues fell short of Wall Street estimates.

The company also lowered its full year outlook due to "softer-than-expected performance of its consumer pakcaged goods." Following the news, Krispy Kreme shares tanked 16 percent in after-hours trade.

Winston-Salem, North Carolina-based Krispy Kreme's second-quarter profit rose to $5.9 million or $0.09 per share from $5.8 million or $0.08 per share a year ago.

Excluding one-time items, adjusted earnings for the quarter improved to $9.8 million or $0.15 per share from $9.0 million or $0.13 per share last year. Analysts polled by Thomson Reuters expected earnings of $0.19 per share for the quarter. Analysts' estimates typically exclude special items.

The doughnut chain's revenue for the quarter rose 5.7 percent to $127.3 million from $120.5 million a year earlier. Analysts had a consensus revenue estimate of $131.97 million for the quarter.

System-wide domestic same store sales rose 5.5 percent, while constant-currency international franchise same store sales declined 2.7 percent.

Looking forward, the company lowered its full-year adjusted earnings outlook to a range of $0.76 to $0.80 per share from prior outlook of $0.80 to $0.85 per share.

Krispy Kreme said it lowered its outlook to reflect the softer than expected performance of its consumer packaged goods category and the year-to-date charges associated with derivative financial positions.

KKD closed Wednesday's trading at $17.73, down $0.14 or 0.78%, on the NYSE. The stock further slipped $2.83 or 15.96% in the after-hours trade.