Krispy Kreme Doughnuts
The 10-second takeaway
For the quarter ended Oct. 28 (Q3), Krispy Kreme Doughnuts beat slightly on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue grew and GAAP earnings per share didn't move.
Gross margins expanded, operating margins expanded, net margins dropped.
Krispy Kreme Doughnuts logged revenue of $107.1 million. The five analysts polled by S&P Capital IQ expected revenue of $105.1 million on the same basis. GAAP reported sales were 8.5% higher than the prior-year quarter's $98.7 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 $0.07. The five earnings estimates compiled by S&P Capital IQ predicted $0.05 per share. GAAP EPS of $0.07 were the same as 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 15.8%, 280 basis points better than the prior-year quarter. Operating margin was 8.8%, 300 basis points better than the prior-year quarter. Net margin was 4.7%, 10 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $114.2 million. On the bottom line, the average EPS estimate is $0.06.
Next year's average estimate for revenue is $432.7 million. The average EPS estimate is $0.26.
The stock has a one-star rating (out of five) at Motley Fool CAPS, with 437 members out of 812 rating the stock outperform, and 375 members rating it underperform. Among 220 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 112 give Krispy Kreme Doughnuts a green thumbs-up, and 108 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 $9.75.
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