Breaking News
LAST CHANCE for Cyber Monday SALE: Up to 54% off InvestingPro! Register here
Investing Pro 0
Ad-Free Version. Upgrade your Investing.com experience. Save up to 40% More details

Krispy Kreme forecasts higher revenue on online, drive-thru bet

Stock MarketsAug 17, 2021 06:45PM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
© Reuters. A Holiday variety box is pictured outside a Krispy Kreme Doughnuts store in Burbank, California, U.S., July 1, 2021. REUTERS/Mario Anzuoni/Files

By Praveen Paramasivam

(Reuters) - Krispy Kreme Inc forecast stronger annual revenue after beating second-quarter estimates on Tuesday, betting on its online business, drive-thru and new menu items to soften any hit from the COVID-19 Delta variant.

The doughnut maker's shares rose 2% in extended trading after its first earnings report since returning as a listed company in July. The company also said it plans to raise prices in September to offset higher labor and commodity costs.

Major U.S. restaurants including McDonald's Corp (NYSE:MCD) and Starbucks (NASDAQ:SBUX) have doubled down on their online businesses to cut wait times for delivery and drive-thru, hoping that the lockdown-driven shift to eating at home more is here to stay.

With the highly contagious Delta coronavirus variant driving a resurgence in cases worldwide, using multiple channels for delivery is key, Krispy Kreme Chief Executive Officer Mike Tattersfield told Reuters in a call.

"You could be closing down your front door but using your drive-thru or using your e-commerce model or using your 'Delivered Fresh Daily' model in the grocery business."

The "Original Glazed" doughnut maker forecast annual net revenue between $1.34 billion and $1.38 billion, as much as 23% higher than last year and compared with Refinitiv IBES estimates of $1.34 billion.

Across the sector, the easing of coronavirus curbs, reopening of offices and new menu items have allowed chains like Starbucks, McDonald's and Wendy's (NASDAQ:WEN) Co to serve up strong forecasts.

Krispy Kreme has also added new items including doughnuts dipped in Hershey Co (NYSE:HSY)'s chocolate icing to draw in returning customers.

It expects to pay a cash dividend of 3.5 cents per share for the quarter ending Oct. 3, the company said.

Net revenue rose 42.6% to $349.2 million in the second quarter ended July 4 versus estimates of $333.4 million.

Excluding items, it earned 13 cents per share, a cent below expectations.

Krispy Kreme forecasts higher revenue on online, drive-thru bet
 

Related Articles

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:  

  •            Enrich the conversation, don’t trash it.

  •           Stay focused and on track. Only post material that’s relevant to the topic being discussed. 

  •           Be respectful. Even negative opinions can be framed positively and diplomatically. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.

  • Use standard writing style. Include punctuation and upper and lower cases. Comments that are written in all caps and contain excessive use of symbols will be removed.
  • NOTE: Spam and/or promotional messages and comments containing links will be removed. Phone numbers, email addresses, links to personal or business websites, Skype/Telegram/WhatsApp etc. addresses (including links to groups) will also be removed; self-promotional material or business-related solicitations or PR (ie, contact me for signals/advice etc.), and/or any other comment that contains personal contact specifcs or advertising will be removed as well. In addition, any of the above-mentioned violations may result in suspension of your account.
  • Doxxing. We do not allow any sharing of private or personal contact or other information about any individual or organization. This will result in immediate suspension of the commentor and his or her account.
  • Don’t monopolize the conversation. We appreciate passion and conviction, but we also strongly believe in giving everyone a chance to air their point of view. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
Comments (2)
Green Mango
Green Mango Aug 17, 2021 7:30PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Better yield on the soylent green
Michael May
Michael May Aug 17, 2021 6:47PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Make em fatter so they cant off fight covid. Genius!
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.
Continue with Google
or
Sign up with Email