Not-so-sweet; Krispy Kreme Stock crashes on Weak Quarterly Results

April 2, 2011, 8:16 pm

Krispy Kreme Doughnuts (NYSE: KKD) shares tumbled more than 21% today, shortly after the companys recently announced results for the fourth quarter of the year. The company reported that it incurred quarterly net loss of $1.5 million. The company reported its revenue at $91.6 million compared to revenue of $86.7 million last year. Its same store sales increased 2.2%. Krispy Kreme Doughnuts was expected to report its quarterly revenue at $93 million.

Krispy Kreme Doughnuts swung to quarterly loss from profits of $520,000 for the corresponding quarter of last year. The company’s net loss for the quarter has been reported at $0.02 per share. For the fourth quarter of last year, the company had reported its profit at $0.01 per share. Analysts were expecting the quarterly income at $0.04 per share.

Krispy Kreme Doughnuts’ 50-days moving average price is $6.55 whereas its long-term moving average price is at $5.45. Krispy Kreme Doughnuts stock opened at $6.13 and touched the high of $6.25. The stock’s lowest price in today’s session is $5.75. The company stock’s EPS is $0.14. The company stock has traded in the range of $3.25 and $8.14 during the past 52 weeks. The company’s market cap is $392.26 million and its P/E ratio is 41.98.

Krispy Kreme Doughnuts deals in doughnuts and packaged sweets. The company operates as a wholesaler and retailer. It also owns and franchises Krispy Kreme Doughnuts branded stores. It distributes about 20 varieties of doughnuts. The company also offers drip coffees, juices and sodas. It is operational in the United States, Lebanon, Korea and China. It also operates in Bahrain, Turkey, Indonesia and Japan. The company was formed in 1937. Krispy Kreme Doughnuts is based out of North Carolina.

Krispy Kreme Doughnuts reported its total current assets at $59.223 million for the year ended January 31, 2010. Its total assets were worth $165.276 million for the same time period. Krispy Kreme Doughnuts had valued its total liabilities at $102.509 million. The company had reported its revenue at $346.52 million and its gross profit for the year at $49.335 million. Krispy Kreme Doughnuts’ net income for the year stood at ($157,000) million.

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