Krispy Kreme sees strong full-year profit, eyes cost cuts

Tue Mar 20, 2012 5:04pm EDT

Krispy Kreme Doughnuts Inc 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. Photo taken on November 22, 2004. REUTERS/Richard Clement-Files

Krispy Kreme Doughnuts Inc 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. Photo taken on November 22, 2004.

Credit: Reuters/Richard Clement-Files

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(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)

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