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Krispy Kreme Says Profit Will Beat Estimates

August 25, 2000|Bloomberg News

Krispy Kreme Doughnuts Inc. said earnings for its fiscal year probably will beat estimates, as profit more than tripled in its fiscal second quarter on surging sales, sending its shares up 24%. Krispy Kreme's stock has nearly quadrupled in its first five months of public trading as the company adds stores across the U.S. and sells more of its glazed doughnuts and honeybuns in supermarkets and convenience stores. The company said net income surged to $3.58 million, or 25 cents a share, in the period ended July 30, from $978,000, or 10 cents, a year earlier. The results far exceeded analysts' expectations of 18 cents. Sales climbed 36% to $70 million, and sales at stores open at least a year jumped 19%. Krispy Kreme said it now expects earnings of $1 a share in the year ending in January, 15 cents more than the average estimate of four analysts polled by First Call/Thomson Financial. Earnings for the next fiscal year likely will reach $1.25, well above the $1.05 analysts now forecast, it said. Shares in Winston-Salem, N.C.-based Krispy Kreme climbed $14.94 to close at $78.31 on Nasdaq.

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