Krispy Kreme Doughnuts Inc.'s bid for its first profitable year since 2004 gained momentum in its second quarter with the posting of $2.2 million in net income today.
The company had a loss of $157,000 a year ago. The second quarter ended on Aug. 1.
Diluted earnings were 3 cents a share compared with no earnings a year ago.
Because of the company's financial difficulties in recent years, coverage of its stock has been dropped by most analysts. The company released the report after the market closed. Its share price rose 12 cents to finish at $4.24.
The company also announced it has raised its operating-income outlook for fiscal 2011 for the second time to a range of $13 million to $17 million. It previously provided a range of $11 million to $15 million on June 3 and a range of $10 million to $13 million on April 15.
Those projections exclude impairment charges and lease termination costs.
James Morgan, the company's chairman, chief executive and president, has stressed caution since the 2008 shareholders meeting about when Krispy would return to profitability. At that time, he said that there likely will be some "unevenness" in quarterly performance for up to two years.
Morgan said in a statement yesterday that "our transition is an on-going process, and we are confident we can build an even stronger foundation for the future by continuing to both invest in our businesses and support our domestic and international franchisees."
"We believe that we are only beginning to unlock the potential of the Krispy Kreme brand."
Email
Facebook
Google
Twitter
Favorites
More
Advertisement