Krispy Kreme Shares Surge After Reporting First Quarterly Profit
Feb 22, 2022 By MarketDepth
Krispy Kreme (NASDAQ: DNUT) shares surged Tuesday after the company posted its first quarterly profit since going public once again. The donut chain posted better-than-expected results, despite experiencing Covid and supply chain costs that ate away at its bottom line. Shares were up almost 2% during premarket trading.
Revenue Down 20%
The American donut company reported earnings of USD0.08 per share, compared to the expected USD0.09 a share. Adjusted earnings for the three months ending January 2 fell 20% from last year, with the results partly due to dilution from its July IPO. Revenue amounted to USD371 Million, higher than analysts anticipated USD364 Million. Furthermore, net income totaled USD4.3 Million, or USD0.01 per share.
“Our fourth quarter and full-year results demonstrate the benefits of our omnichannel model and global expansion strategy, which allow us to meet consumer demand with premium, fresh doughnuts. Our global Halloween campaign and seasonal limited-time offerings resonated strongly with consumers which really maximizes the gifting and sharing occasions of the brand.”CEO Mike Tattersfield
“Looking ahead, we are well-positioned to deliver another year of double-digit revenue growth in 2022,” he added. “Our performance will be led by the expansion of our omnichannel model, as we continue to significantly expand our points of access. We are incredibly excited for the opportunity to open in at least three new countries in 2022 and expand our global footprint for years to come.”
Forecasts Below Anaylsts
Krispy Kreme believes 2022 net revenue growth will fall between 11% to 13%, similar to Wall Street’s expectations. However, its outlook for adjusted earnings of USD0.38 to USD0.41 is below analysts’ forecast of USD0.45 per share.