Seeking Alpha

Krispy Kreme +9.1% AH on strong guidance, buyback hike

  • Though it missed FQ4 estimates, Krispy Kreme (KKD) is guiding for FY15 (ends Jan. '15) EPS of $0.73-$0.79 vs. a $0.76 consensus.
  • The company also forecasts a 10% FY15 store count increase (driven heavily by international franchisee openings), says it aims to "achieve modest organic same store sales growth in its Company shops." A majority of new domestic shops will leverage the company's new free-standing factory shop format.
  • Krispy Kreme is upping the size of its buyback authorization by $30M to $80M. $50M is remaining following $9.3M worth of buybacks in FQ4.
  • Same-store sales rose 1.6% Y/Y in FQ4 at company stores, down from 3.7% in FQ3. Domestic franchise same-store sales +6.2% vs. +10.7%, international franchisees -3.4% vs. -3.1%. Krispy Kreme blames the international drop on "honeymoon effects" for new store openings, and "cannibalization as markets develop."
  • Company stores revenue -9% Y/Y to $74.3M, external supply chain revenue +5% to $28.4M. Franchise revenue rose slightly to $10M.
  • Krispy Kreme plans to change its same-store sales methodology. Stores will only be counted after 18 months of operation, up from a current 13.
  • FQ4 results, PR
Comments (1)
  • Fanebrb
    , contributor
    Comments (659) | Send Message
     
    Bad, small and overpriced noduts.
    13 Mar 2014, 02:04 AM Reply Like
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