WINSTON-SALEM, N.C., Nov. 15 /PRNewswire/ — Krispy Kreme Doughnuts, Inc.(NYSE: KKD) today reported financial results for the three months ended October 28, 2001, the Company’s third quarter of fiscal 2002.
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Systemwide sales, including sales of both company and franchise stores, increased 37.5% to $154.4 million in the third quarter, compared with $112.3 million in the third quarter of fiscal 2001. Sales were driven by an increase in company store sales of 26.9% to $68.6 million and growth in franchise store sales of 47.5% to $85.8 million. On a comparable store basis, systemwide store sales increased 13.6% and company store sales grew 11.1%.
Total company revenues, which include sales from Company Stores, Franchise Operations, and Krispy Kreme Manufacturing and Distribution (“KKM&D”), rose 28.1% to $99.8 million in the third quarter, compared with $77.9 million in the third quarter of fiscal 2001. Sales from Company Stores increased 26.9% to $68.6 million; revenues from Franchise Operations increased 39.7% to $3.4 million; and KKM&D sales increased 30.0% to $27.8 million.
Net income for the third quarter was $6.5 million, an increase of 68.2% compared with $3.9 million in the third quarter last year. Diluted earnings per share increased to $0.11 in the third quarter of fiscal 2002 from $0.07 per share in the prior year comparable period, a 63.2% gain versus last year.
For the nine months ended October 28, 2001, systemwide sales increased 35.8% to $439.1 million from $323.3 million in the same period of last year. This increase was a result of growth in company store sales of 21.9% to $190.8 million and an increase in franchise store sales of 48.9% to $248.2 million.
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By GlobalDataTotal company revenues rose 26.7% to $277.3 million in the first nine months of the year compared with $218.8 million in the same period of the prior year. Sales from Company Stores increased 21.9% to $190.8 million; revenues from Franchise Operations rose 42.9% to $9.6 million; and KKM&D sales increased 38.3% to $76.9 million.
Net income for the nine months was $18.1 million, an increase of 73.0% compared to $10.5 million a year ago. Diluted earnings per share increased to $0.31 in the first nine months of the year from $0.20 per share in the prior year, growing 57.1%.
Commenting on the third quarter results, Scott Livengood, Chairman, President and CEO of Krispy Kreme Doughnuts, Inc., said, “I am extremely pleased with our third quarter results and our continued momentum. Business continues to be strong across all sales channels and across the country. We were also pleased this quarter to announce the development of a new
technology, our Krispy Kreme Hot Doughnut Machine, that has the potential to significantly increase the number of stores we will build. As we begin the fourth quarter, we are gratified to announce that our Seattle store, which opened October 30, set an opening week sales record with $454,125 over the first seven days.”
The Company also indicated that, based on its performance in the third quarter and projections for the fourth quarter, it now expects to earn $.44 per fully diluted share, or $.02 above consensus, in the current fiscal year and $.61 per share, or $.02 above consensus, in FY2003. Finally, the Company increased its full year guidance on new store openings from 40 to 43.
During the quarter, ten new Krispy Kreme stores were opened, including three new markets in Fresno, CA, Pittsburgh, PA, and Davenport, IA. Additionally, Krispy Kreme closed one store in New York City and one store in Greensboro, NC, during the quarter, bringing the total number of stores at October 28, 2001 to 198. Since the end of the quarter, Krispy Kreme has
opened additional franchise stores in Seattle, WA, Salt Lake City, UT (2), Denver, CO, Birmingham, AL, and one company store in Northern California.
The 64-year-old North Carolina-based company is a leading branded specialty retailer of premium quality doughnuts, including the Company’s signature Hot Original Glazed. Krispy Kreme currently operates 204 stores in 32 states.
Krispy Kreme can be found on the World Wide Web at http://www.krispykreme.com .
