WINSTON-SALEM, N.C. – Krispy Kreme Doughnuts Inc.'s profit rose 68 percent in the third quarter, beating Wall Street expectations as doughnut sales remained strong during the company's coast-to-coast expansion.
The company said late Thursday it earned $6.5 million, or 11 cents per share, in the quarter ended Oct. 28, up from $3.9 million, or 7 cents a share, a year ago.
The latest results beat the consensus forecast of 10 cents a share by analysts surveyed by Thomson Financial/First Call.
Its revenue rose 28 percent to $99.8 million in the quarter from $77.9 million last year.
The doughnut-maker said its projections for the fourth quarter allowed it to increase its earnings expectations for the year to 44 cents a share, 1 cent above the Thomson Financial/First Call consensus, and 61 cents a share next year, 2 cents above analysts' expectations.
Chairman and chief executive Scott Livengood said the company's continued momentum includes the development of a machine that reduces the amount of space needed to churn out the fresh confections, allowing Krispy Kreme to significantly increase the number of stores that can be built.
The company opened 10 stores during the quarter and closed locations in New York City and Greensboro, bringing the total number of shops to 198.
For the first nine months of this year, profits were $18.1 million, or 31 cents a share, up from $10.5 million, or 20 cents a share, a year ago. Revenue rose to $277.3 million from $218.8 million a year ago.