Krispy Kreme Doughnuts Inc. (KKD), the sweet-treat retailer that has been pushing beverages, advanced to the highest price in more than eight years after boosting its annual profit forecast amid higher same-store sales.
The shares rose 21 percent to $17.32 at the close in New York for the highest price since July 2004. The Winston-Salem, North Carolina-based company said yesterday that annual per-share profit will be as much as 11 percent higher than it previously forecast.
Krispy Kreme, with about 770 shops globally, has recently promoted fancier drinks, such as frozen pink lemonade and Kaffe Kreme coffees, to help draw customers from competitors including Dunkin’ Donuts and Starbucks Corp. (SBUX) Same-store sales at company locations rose 11 percent during the quarter ended May 5, the 18th consecutive quarterly increase, according to a company statement.
“The lattes and some of the higher-priced coffee derivative drinks were picking up pace” during the quarter, Chief Executive Officer James Morgan said during a conference call with analysts yesterday, after the markets closed.
Profit will be as much as 63 cents a share in the company’s fiscal 2014, compared with a previous forecast of as much as 57 cents, Krispy Kreme said yesterday in the statement. Analysts had estimated 58 cents, according to data compiled by Bloomberg.
Krispy Kreme has gained 85 percent this year, while the Standard & Poor’s 500 Index has added 14 percent.
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