KRISPY Kreme Doughnuts yesterday reported its highest quarterly profit in more than seven years, beating analysts’ estimates.
The company also gave positive guidance about meeting the upper end of its forecast range, sending its shares up 19 per cent.
The doughnut chain, which competes with Dunkin’ Donuts, backed its fiscal 2012 operating income forecast of $22m to $24m (£13.7m to £14.9m), and said its first-quarter results made “the high end of that range appear increasingly achievable”.
First-quarter net income was $9.2m, or 13 cents a share, compared with $4.5m or six cents a share, a year ago. Revenues rose 13.6 per cent to $104.6m.
Analysts on average had expected earnings of nine cents a share, on revenue of $96.5m.
The gains come after the company posted a fourth-quarter loss in March and said it expected to increase prices to counter rising input costs.
Its rival, private equity-backed Dunkin’ Brands Group, said earlier this month it plans to go public with a $400m initial public offering, the latest in a slew of buyout-backed floats in the US.