Krispy Kreme sees strong full-year profit, eyes cost cuts
(Reuters) - Krispy Kreme Doughnuts Inc (KKD.N) forecast full-year profit largely above analysts' expectations, saying it will continue to cut back on its consumption of some key ingredients to combat rising input costs.
The doughnut chain's shares rose 4 percent in after-market trading. They had closed at $8.49 on Tuesday on the New York Stock Exchange.
Krispy Kreme, which competes with Dunkin' Brands' (DNKN.O) Dunkin' Donuts chain, expects full-year adjusted earnings of 35 cents to 41 cents a share, while analysts were expecting 35 cents a share, according to Thomson Reuters I/B/E/S.
Fourth-quarter net income was $143.5 million, or $2.01 a share, compared with a net loss of $1.5 million, or 2 cents a share, a year ago.
Excluding a one-off gain, the company earned 6 cents a share in the quarter, matching analysts' estimates. Revenue rose 11 percent to $102.0 million, topping market expectations of $101.3 million.
(Reporting by Meenakshi Iyer in Bangalore; Editing by Viraj Nair)