Krispy Kreme Q3 Net Loss Narrows
Published:07-December-2009
By Staff Reporter
Posts operating income of $0.6m compared to operating loss of $1.3m in the year ago quarter
Krispy Kreme Doughnuts has reported net loss of $2.4m or $0.04 per share for the third quarter of fiscal 2010 compared to a net loss of $5.9m or $0.09 per share for the corresponding period previous year.
For the quarter revenues was $83.6m compared to $94.3m for the same quarter previous year. Operating income third quarter was $0.6m compared to an operating loss of $1.3m for the previous year quarter. Operating income for third quarter reflects provisions for the settlement of litigation and related legal costs totaling approximately $2m ($.03 per share).
Same store sales at company-owned stores increased 5.1% year-over-year in the third quarter, compared to a gain of 5.9% in the second quarter, 2.1% in the first quarter and 0.9% in the fourth quarter of last year.
During the quarter the company opened small retail shops, bringing total small shop openings to five for the year, and signed letters of intent for five additional small retail concept shop leases in Virginia and Tennessee.
The company's domestic franchisees opened two small retail shops in the quarter, one in Arizona and the other in Pennsylvania, and its international franchisees expanded with a net increase of 15 locations in the quarter, including the first Krispy Kreme shop in Turkey which opened in Istanbul. The company also awarded franchise development rights for Thailand and the Dominican Republic.
Jim Morgan, president and chief executive officer of Krispy Kreme Doughnuts, said: "Our improved results are evidence of progress in implementing our strategic initiatives, which have us on a path toward building a growing, profitable business that is sustainable for the long term.
“These results continue to reflect the efforts and dedication of our team members and franchisees. We believe that we have the right strategies, and that the benefits of their implementation will be more fully reflected in our financial results in the quarters and years ahead."
