Krispy Kreme COO Steps Down - Analyst Blog
April 13 2012 - 6:15AM
Zacks
Winston-Salem, North Carolina-based
Krispy Kreme Doughnuts, Inc. (KKD) recently
announced that its President and Chief Operating Officer (COO)
Kenneth A. May has stepped down from his position citing personal
reasons.
Mr. May joined the company toward
the end of November 2011 and we were encouraged with his
appointment given his experience of more than 25 years in the field
of retail, brand enhancement and supply chain. We expected Krispy
to prosper under his leadership.
However, his resignation in such a
short span of time comes as a shock for us. The investors were also
disappointed; and consequently, the stock price fell 18 cents from
the previous day price and closed at $6.84 on Tuesday.
James H. Morgan, the Chairman and
Chief Executive officer (CEO) of Krispy Kreme has been reinstalled
as the company’s President, the post he had held since 2008 and had
to vacate when May joined.
In the recently concluded fourth
quarter of 2012, the company reported adjusted earnings of 6 cents
per share, lagging the Zacks Consensus Estimate by a penny.
Quarterly earnings came in the positive territory from the year-ago
loss of 2 cents per share.
Total revenue climbed 11.2% year
over year to $102.0 million in the quarter. Same-store sales at
company stores rose 8.3%, reflecting the thirteenth consecutive
quarter of comps growth. Domestic franchise same-store sales grew
7.9%, but International franchise same-store sales fell 8.8%.
For 2013, the company expects
earnings to remain between 21 cents and 24 cents per share.
On an adjusted basis, management expects earnings in the
range of 35-41 cents, which includes only income tax. Operating
income is estimated to be in the range of $29 million to $33
million, inclusive of impairment and lease termination
costs.
Krispy Kreme, which competes with
the likes of Red Robin Gourmet Burgers Inc. (RRGB)
and Papa John's International Inc. (PZZA),
currently retains a Zacks #4 Rank that translates into a short-term
Sell rating. We are also maintaining our long-term Neutral
recommendation on the stock.
KRISPY KREME (KKD): Free Stock Analysis Report
PAPA JOHNS INTL (PZZA): Free Stock Analysis Report
RED ROBIN GOURM (RRGB): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
Red Robin Gourmet Burgers (NASDAQ:RRGB)
Historical Stock Chart
From Jun 2024 to Jul 2024
Red Robin Gourmet Burgers (NASDAQ:RRGB)
Historical Stock Chart
From Jul 2023 to Jul 2024