Krispy Kreme reports $31.8 million in net loss for 4th-Q

WINSTON-SALEM N.C. Krispy Kreme Doughnuts Inc. reported Thursday wider net losses for both its fourth quarter and full year, versus the same periods a year earlier, on increased charges for closed units and decreased sales.

The company, which operates or franchises 449 Krispy Kreme restaurants, booked a net loss of $31.8 million, or 50 cents per share, for the 14-week quarter ended Feb. 3, compared with a net loss of $24.4 million, or 39 cents per share, reported for the 13-week, year-earlier quarter. Impairment and lease termination charges in the latest quarter totaled 43 cents per share, the company reported.

Revenue for the latest quarter fell 1.2 percent to $110.9 million. Excluding revenue from the additional operating week in the latest quarter, revenues decreased 8.2 percent from a year ago to $102.9 million, the company said. The drop reflected an 11.1-percent decrease in sales to $70.4 million, a 5.2-percent decrease in supply chain revenues to $25.8 million, and a 17-percent increase in franchise revenues to $6.7 million. Krispy Kreme franchisees opened 32 new locations during the quarter.

The net loss for the year was $67.1 million, or $1.05 per share, compared with a net loss of $42.2 million, or 68 cents per share, a year earlier.

Latest-year revenue decreased 6.9 percent to $429.3 million, the company reported, but excluding the additional week in the latest fiscal year, revenue declined 8.6 percent to $421.3 million.

“Beyond the challenges we still face, we believe there are a multitude of opportunities,” Jim Morgan, chairman, president and chief executive, said in a statement, “and we are committed to providing corporate performance that is in keeping with the iconic brand we represent.”