Krispy Kreme Narrows Loss, Sales Drop

Krispy Kreme Doughnuts Inc. said Thursday its FQ4 loss narrowed to $24.4 million ($0.39/share), compared with a loss of $37.7 million ($0.61/share) in the year-earlier quarter. Revenue was down to $112.2 million from $122.2 million in FQ4 2006. For the fiscal year, Krispy Kreme's net loss was $42.2 million ($0.68/share) vs. a loss of $135.8 million ($2.20/share) a year earlier. Yearly revenue fell 15.1% to $461.2 million. The doughnut maker stumbled in 2004 as it attempted to expand. Shares fell from a high of over $50 to $4, but have since nearly tripled. CEO Daryl Brewster: "Krispy Kreme is in the midst of a turnaround... We are moving out of a survival mode and addressing key challenges." The conference call was the company's first in three years. Shares gained 3.2% in regular trading, but shed 4.8% to $10.75 in after-hours trading.

Sources: Press release, AP
Commentary: Krispy Kreme: Round Trip Stock Price • Did Krispy Kreme Sugar Coat Its Financial Statement? • Five Examples of When 'Buy What You Know' Doesn't Pay
Stocks/ETFs to watch: Krispy Kreme Doughnuts (KKD). Competitors: Starbucks Corp. (SBUX), Tim Hortons Inc. (THI)

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