The company now expects fiscal-year revenue between $1.05 billion and $1.1 billion, from a previous range of $1.1 billion to $1.15 billion.
It expects operating income, before restructuring expenses, to be at the low end of previous guidance of 2 percent to 2.5 percent of revenue in fiscal 2008.
Restructuring expenses are expected to be $5 million to $8 million.
Shares fell $2.23, or 14.9 percent, to $12.78 in aftermarket electronic trading, after closing up 22 cents at $15.01.
My posting is for my own entertainment, do your own DD before pushing your buy/call button
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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