Krispy Kreme nearly breaks even for 2010
Krispy Kreme Doughnuts on Thursday reported earnings of $500,000 for its fourth fiscal quarter of 2010, compared with a loss of $300,000 during the same period a year ago.
The Winston-Salem-based company said it nearly broke even for the full year, ending with a net loss of $200,000, compared with a loss of $4.1 million in 2009.
The company has not had a profitable full year since 2004. In its outlook, Krispy Kreme expects a net profit in fiscal 2011.
“During fiscal 2010, we made substantial progress in building a stronger foundation for our company and improving our business model,” said Jim Morgan, Krispy Kreme’s president and CEO. “The improvements in our operating results and financial position are a testament to the soundness of our business strategy, and reflect our ongoing efforts to enhance shareholder value over the long term.”
During the fourth quarter, revenues were $86.8 million, a 5.6 percent decline from the year earlier. But operating income increased 65 percent to $2.4 million, from $1.5 million. Sales at company-owned stores open at least a year rose by 1 overnight pay day loans.1 percent, making the fifth straight quarterly increase.
The company owns 83 of the 582 Krispy Kreme stores worldwide. The other 499 are franchise locations.
For the full year, revenues were down 10 percent from $385.5 million to $346.5 million. Company-owned same-store sales rose 3.5 percent from 2009, and operating income more than doubled to $11.8 million from $4.8 million.
Krispy Kreme was also able to reduce its debt by $31.4 million during its fiscal 2010, to $43.4 million.
The company increased its number of stores worldwide by 59 over the past year. Looking ahead to fiscal 2011, Krispy Kreme expects to add seven to 10 company stores and 35 to 45 domestic and international franchise shops. While most of its growth recently has been abroad, Krispy Kreme expects the number of domestic stores to rise for the first time since 2005.
The company anticipates operating income in 2011 of $10 million to $13 million.