On Thursday, April 12, after the market closed, doughnut chain Krispy Kreme Doughnuts (NYSE:KKD) released fourth-quarter and year-end results for the period ended Jan. 28. Here are the quick and dirty details for the quarter.

  • Net sales fell 8.2% as company-owned stores saw an 11.2% sales drop. According to the company, it "made progress during the past year" even though total top-line trends remain challenging.
  • The net earnings loss narrowed but was still firmly negative, dragged down by another litigation settlement charge.
  • On a more positive note, operating cash flow was positive as negative capital expenditures brought in funds and long-term debt fell 10%. Management reckons it is seeing "stability in [its] overall average unit volume, [and has] developed a pipeline for new products and seen growth internationally utilizing a flexible real estate model."
  • Krispy Kreme carries an unhealthy one-star rating in the Motley Fool CAPS community. Fools may want to consider more tasty prospects in the restaurant industry, including Buffalo Wild Wings (NASDAQ:BWLD) and Sonic (NASDAQ:SONC), which have four-star ratings, or YUM! Brands (NYSE:YUM) and McDonald's (NYSE:MCD) with their respective three-star ratings. All sell sugary treats with overall prospects that could be easier to swallow.

(Figures in thousands, except per-share data)

Income Statement Highlights

Q4 2007

Q4 2006






Net Profit








Get back to basics with a look at the income statement.

Margin Checkup

Q4 2007

Q4 2006


Gross Margin




Operating Margin




Net Margin




*Expressed in percentage points.

Margins are the earnings engine.

Balance Sheet Highlights


Q4 2007

Q4 2006


Cash + ST Invest.




Accounts Rec.









Q4 2007

Q4 2006


Accounts Payable




Long-Term Debt




The balance sheet reflects the company's health.

Cash Flow Highlights

Q4 2007

Q4 2006


Cash From Ops.




Capital Expenditures




Free Cash Flow




*Twelve months ended Jan. 28, 2007, and Jan. 29, 2006.

Free cash flow is a Fool's best friend.

Related Foolishness:

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Fool contributor Ryan Fuhrmann has no financial interest in any company mentioned. Feel free to email him with feedback or to discuss any companies mentioned further. The Fool has an ironclad disclosure policy.