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UPDATE 1-Krispy Kreme cuts adjusted earnings outlook as costs rise
June 2, 2014 / 10:35 PM / in 4 years

UPDATE 1-Krispy Kreme cuts adjusted earnings outlook as costs rise

* Cuts 2015 profit outlook to $0.69-$0.74 per share from $0.73-$0.79

* 1st-qtr revenue $121.58 mln vs est. $126.68 mln (Adds details, updates share movement)

June 2 (Reuters) - Krispy Kreme Doughnuts Inc cut its full-year adjusted earnings forecast as recent management changes and technology upgrade weigh on costs, and reported lower-than-expected revenue for the first quarter.

Shares of the company were down as much as 10.6 percent in extended trading.

The company appointed former Papa John’s International Inc chief Anthony Thompson as chief executive last month. It also appointed a new senior vice president of human resources.

The company cut its fiscal 2015 adjusted earnings forecast to 69-74 cents per share from 73-79 cents.

Analysts on average were expecting earning of 78 cents per share, according to Thomson Reuters I/B/E/S.

Krispy Kreme, which distributes doughnuts to grocers, mass merchants and convenience stores, said extreme weather conditions in February and March prevented customers from visiting its stores and affected deliveries to wholesale customers.

Company same-store sales fell 1.5 percent for the first quarter ended May 4.

Krispy Kreme said revenue for the first quarter rose 0.79 percent to $121.58 million, missing the average analyst estimate of $126.68 million.

Net income rose to $9.65 million, or 14 cents per share, for the quarter ended May 4, from $7.99 million, or 11 cents per share, a year earlier.

Excluding items, the company earned 23 cents per share, in line with estimates.

Krispy Kreme’s shares closed at $19.00 on the New York Stock Exchange on Monday. (Reporting by Shailaja Sharma in Bangalore; Editing by Don Sebastian)

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