From: Linda (joelinda1@home.com)
Date: Thu Aug 24 2000 - 15:38:37 PDT
[Adam, why didn't we look at this one? It's outperformed many
tech IPO's from this spring, and today the stock jumped 24% on a
great earnings release. Same store sales up 19%.
We're deprived of Krispy Kremes up here in Canada. Are they really
*that* good?
--Linda]
http://www.thestreet.com/brknews/general/1053255.html
Krispy Kreme Heats Up, Rising Nearly 24% on Solid Earnings
By Tim Arango
TheStreet.com/NYTimes.com Staff Reporter
8/24/00 4:28 PM ET
Updated from 12:53 p.m. EDT
Shares in Krispy Kreme Donuts (KREM:Nasdaq - news) surged Thursday after
the company reported quarterly earnings above Wall Street estimates.
The company, which is known for making hot glazed donuts, reported net
income for the second quarter at $3.6 million, a 266% increase from
the $1 million in net income in last year's second quarter. It earned
25 cents a share, up from 10 cents a share in the year-ago period. The
consensus among Wall Street analyst was for the company to earn 18 cents
a share, according to market research firm First Call/Thomson Financial.
Shares rose nearly 24% on the news, finishing up 14
15/16 at 78 5/16. Its all-time high is 80 5/8.
Revenue for the quarter rose 36% to $70 million, compared
with $51.4 million in last year's second quarter.
Among stores that have been open at least a year, systemwide stores --
which includes franchises -- rose 19.4%, while company-owned store sales
rose 24.4%.
The company also raised its earnings-per-share expectations for the full
year to $1. This compares to an 85-cent consensus among Wall Street
analysts, according to First Call/Thomson Financial.
Krispy Kreme, based in Winston-Salem, N.C., went public in April. During
the quarter that ended July 30, six new stores opened, while the company
increased its projected store openings for the current year to 28 from
22. It expects to open 32 new stores in fiscal 2002. It has 154 stores
in 27 states.
Krispy Kreme was founded in 1937, and has long been popular in the
South. In recent years, it began expanding into the Northeast and West.
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