Krispy Kreme Doughnuts
The 10-second takeaway
For the quarter ended Jan. 29 (Q4), Krispy Kreme Doughnuts met expectations on revenues and crushed expectations on earnings per share.
Compared to the prior-year quarter, revenue expanded and GAAP earnings per share grew.
Margins increased across the board.
Krispy Kreme Doughnuts tallied revenue of $102.0 million. The five analysts polled by S&P Capital IQ wanted to see revenue of $101.3 million on the same basis. GAAP reported sales were 11% higher than the prior-year quarter's $91.7 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at $2.01. The six earnings estimates compiled by S&P Capital IQ predicted $0.06 per share. GAAP EPS were $2.01 for Q4 compared to -$0.02 per share for the prior-year quarter.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 13.8%, 120 basis points better than the prior-year quarter. Operating margin was 5.3%, 150 basis points better than the prior-year quarter. Net margin was 140.8%, 14,240 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $111.1 million. On the bottom line, the average EPS estimate is $0.11.
Next year's average estimate for revenue is $439.9 million. The average EPS estimate is $0.34.
The stock has a one-star rating (out of five) at Motley Fool CAPS, with 412 members out of 784 rating the stock outperform, and 372 members rating it underperform. Among 209 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 97 give Krispy Kreme Doughnuts a green thumbs-up, and 112 give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Krispy Kreme Doughnuts is outperform, with an average price target of $8.96.
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Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor of Motley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.