Krispy Kreme's stock jumped to its highest level in more than a year on Tuesday as the chain's third-quarter results topped analysts' estimates. It also provided a fiscal 2013 adjusted earnings forecast above Wall Street's view.
Krispy Kreme Doughnuts Inc. reported on Monday that its net income rose to $5 million, or 7 cents per share, for the three months ended Oct. 28. That compares with $4.7 million, or 7 cents per share, a year earlier.
Excluding a provision for deferred income taxes, earnings were 12 cents per share.
Analysts surveyed by FactSet expected earnings of 9 cents per share.
Revenue increased 9 percent to $107.1 million from $98.7 million. Wall Street forecast $104.7 million.
Revenue at company stores open at least a year rose 6.8 percent on increased traffic. Revenue at domestic franchised stores open at least a year climbed 5 percent. This figure excludes results from stores recently opened or closed.
Mark Kalinowski of Janney Capital Markets said in a client note that the quarterly performance benefited from robust same-store sales growth. The analyst believes at least some of the same-store sales performance was helped by more effective marketing, favorable media attention and appealing limited-time seasonal products.
Kalinowski maintained a "Neutral" rating.
For fiscal 2013, the Winston-Salem, N.C., company anticipates adjusted earnings between 44 cents and 47 cents per share. It predicts adjusted earnings in a range of 49 cents to 55 cents per share for fiscal 2014.
Analysts expect earnings of 43 cents per share for 2013 and earnings of 51 cents per share for 2014.
Krispy Kreme shares rose $1.62, or 21.5 percent, to $9.16 in afternoon trading. The stock reached $9.24 earlier in the session, the highest point since August 2011.