AI
Krispy Kreme swings to gain; shares advance
http://news.moneycentral.msn.com/provider/providerarticle.aspx?feed=ACBJ&date=20080609&id=8749329
Krispy Kreme Doughnuts Inc. posted its first quarterly gain in three years despite a sales slump, the company said Monday, as it avoided the sort of one-time costs that hurt its bottom line last year.
But the Winston-Salem, N.C.-based confectionery maker (NYSE: KKD) said trouble could still loom amid falling sales at its U.S. locations.
Krispy Kreme, which has several stores in the Birmingham metro area, earned $4 million, or 6 cents a share, in the quarter ended May 4. A year earlier, the company lost $7.4 million, or 12 cents a share. One-time losses in the year-ago period included debt refinancing charges and the settlement of litigation.
During the most recent quarter, Krispy Kreme saw a $930,000 non-cash gain after selling its interest in two franchisees. It also posted a gain of $645,000 related to its real estate.
Those one-time gains combined with the strong performance of international franchises to bring Krispy Kreme into the black even as total revenue fell 6.6 percent to $103.6 million. Same-store sales, a key measure that includes revenue from all stores that have operated at least 57 straight weeks, fell by a combined 3.9 percent at company-owned stores and franchised locations.
As a result, Krispy Kreme said some of its franchisees might feel the pinch in coming quarters.
"The company believes franchisees will close additional stores in the future, and the number of such closures may be significant," the company warned in a statement. That, in turn, would lower sales at the company, which derives about 30 percent of its revenue from franchise royalties and a supply-chain business.
"We are pleased to report improved bottom line results in the first quarter of fiscal 2009 compared to the first quarter of last year," Chief Executive Jim Morgan said in a statement. "Much work remains to be done to achieve the consistent profitability and sustainable growth we envision. While we continue to face many challenges, I believe more than ever there also are many opportunities ahead of us. Although our near-term results may be uneven, our employees are working hard to implement the further improvements necessary for us to be successful for the long term."
My posting is for my own entertainment, do your own DD before pushing your buy/call button
http://news.moneycentral.msn.com/provider/providerarticle.aspx?feed=ACBJ&date=20080609&id=8749329
Krispy Kreme Doughnuts Inc. posted its first quarterly gain in three years despite a sales slump, the company said Monday, as it avoided the sort of one-time costs that hurt its bottom line last year.
But the Winston-Salem, N.C.-based confectionery maker (NYSE: KKD) said trouble could still loom amid falling sales at its U.S. locations.
Krispy Kreme, which has several stores in the Birmingham metro area, earned $4 million, or 6 cents a share, in the quarter ended May 4. A year earlier, the company lost $7.4 million, or 12 cents a share. One-time losses in the year-ago period included debt refinancing charges and the settlement of litigation.
During the most recent quarter, Krispy Kreme saw a $930,000 non-cash gain after selling its interest in two franchisees. It also posted a gain of $645,000 related to its real estate.
Those one-time gains combined with the strong performance of international franchises to bring Krispy Kreme into the black even as total revenue fell 6.6 percent to $103.6 million. Same-store sales, a key measure that includes revenue from all stores that have operated at least 57 straight weeks, fell by a combined 3.9 percent at company-owned stores and franchised locations.
As a result, Krispy Kreme said some of its franchisees might feel the pinch in coming quarters.
"The company believes franchisees will close additional stores in the future, and the number of such closures may be significant," the company warned in a statement. That, in turn, would lower sales at the company, which derives about 30 percent of its revenue from franchise royalties and a supply-chain business.
"We are pleased to report improved bottom line results in the first quarter of fiscal 2009 compared to the first quarter of last year," Chief Executive Jim Morgan said in a statement. "Much work remains to be done to achieve the consistent profitability and sustainable growth we envision. While we continue to face many challenges, I believe more than ever there also are many opportunities ahead of us. Although our near-term results may be uneven, our employees are working hard to implement the further improvements necessary for us to be successful for the long term."
My posting is for my own entertainment, do your own DD before pushing your buy/call button
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