Krispy Kreme reported its first quarterly profit since going public again but fell short of Wall Street’s expectations for its earnings.
If You're Going Abroad for Spring Break, Here's What It's Like to Self-Test for Your Flight Back Home
Excluding items, the company earned 8 cents per share, missing the 9 cents per share expected by analysts surveyed by Refinitiv. CEO Mike Tattersfield said in an interview that Krispy Kreme, like the broader restaurant industry, is seeing labor and commodity inflation, although it's able to hedge against higher ingredient costs. The cost of sugar, wheat and oil make up about 12% of the company's sales, and he said that
In the fourth quarter, Krispy Kreme raised prices twice. Compared with the year-ago period, the company's prices are now up by the high-single digits worldwide, according to Tattersfield.Net sales rose 13.8% to $371 million, beating expectations of $364 million. Organic revenue climbed 13.9% compared with the year-ago period and 15.9% on a two-year basis.
Tattersfield credited strong Halloween and holiday demand for the company's strong sales growth. Looking ahead to the first quarter, he said Valentine's Day also saw robust sales. The February holiday is typically the company's biggest day for sales.For 2022, Krispy Kreme is anticipating net revenue growth of 11% to 13%, in line with Wall Street's expectations.