US doughnut maker and retailer Krispy Kreme has reported a more than 43% rise in quarterly net income.
The company posted net income of US$14.5m for the third quarter to 2 November, compared to $10.1m a year earlier.
Total company revenues, which include sales from company stores, franchise operations, Krispy Kreme Manufacturing and Distribution (KKM&D) and Montana Mills, rose 31.4% to $169.6m. Sales from company stores increased 40.0% to $110.6m, while revenues from franchise operations grew 32.3% to $6.5m.
“Our business momentum continues and our third quarter results reflect our focus on opening new stores, establishing strong off-premises relationships and gaining greater market share,” said Scott Livengood, chairman, president and chief executive.
During the quarter, 27 new Krispy Kreme factory stores were opened in ten new markets. The company opened its first factory store in Europe, located in Harrods department store in London. This brings the total number of stores at the end of the third quarter to 326. Additionally, during the quarter the company opened eight satellite units consisting of six fresh shops and two doughnut and coffee shops.
Based on its latest review of factory store and satellite development plans, Krispy Kreme said it now expects fiscal 2004 store openings to range between 92 and 97, exceeding the previous guidance of 87 new stores.