Krispy Kreme loss widens in Q3 while revenue tops estimates and company backs guidance
Krispy Kreme Inc. said Tuesday it had a net loss of $13.1 million, or 8 cents a share, in the third quarter, wider than the loss of $5.66 million, or 4 cents a share, posted in the year-earlier period. Adjusted per-share earnings came to 3 cents, below the 4 cent FactSet consensus. Revenue climbed to $377.5 million from $342.8 million a year ago, ahead of the $362.0 million FactSet consensus. The donut company said the strong dollar shaved 3.3% off revenue growth in the quarter. "Margins improved significantly in the final period of the quarter as we successfully implemented price increases in the U.S. coupled with decreased promotional activity after Labor Day," CEO Mike Tattersfield said in a statement. "Strong momentum continues into the fourth quarter enhanced by further recent pricing actions in the U.S. and U.K. and a robust global Halloween performance." The company is still expecting full-year adjusted EPS of 29 cents to 32 cents on revenue of $1.49 billion to $1.52 billon. Shares were down 0.5% premarket and have fallen 25% in the year to date, while the S&P 500 has fallen 17%.
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