Krispy Kreme Doughnuts Inc. shares rose the most in more than two years after quarterly results beat analysts’ estimates, a sign that doughnuts are weathering a shift to healthier eating.
Krispy Kreme’s rose 14 percent to $19.81 on Thursday in New York, the biggest one-day gain for the doughnut chain since May
Krispy Kreme has fueled growth by adding espresso and smoothie drinks and opening more stores. After increasing its store count by 17 percent in the first quarter, the chain now has 1,003 locations worldwide. The company is focused on opening smaller stores that don’t make doughnuts on the premises and are cheaper to build.
Even with a growing focus on healthy eating, Americans can’t seem to quit doughnuts. Krispy Kreme’s U.S. same-store sales rose 5.2 percent in the quarter, beating the 1.4 percent average estimate of analysts surveyed by Consensus Metrix. Adjusted profit was 24 cents a share, surpassing a projection of 22 cents.
Krispy Kreme’s strong quarter follows positive results from Dunkin’ Donuts, which boosted sales with its croissant doughnut. That company also has experimented with a bacon deluxe pastry in some locations.
Krispy Kreme, based in Winston-Salem, North Carolina, had seen its shares fall 12 percent this year through Wednesday’s close. Thursday’s run-up erased that decline.