Krispy Kreme Profit Rises 61% on Sales Boost

Krispy Kreme Doughnuts Inc. said profit rose a better-than-expected 61% to $3.05 million, or 27 cents a share, as sales jumped 33% to $71 million. The company also said extensive news coverage of its $72.5-million initial public offering last month generated greater-than-expected traffic at its 153 shops in 27 states. Sales at stores open at least a year rose 19%, twice analysts’ estimates, in the period that ended April 30. Krispy Kreme also sells its glazed doughnuts and crullers through grocery stores. The Winston-Salem, N.C.-based company was expected to earn 23 cents a share. Company officials said on a conference call they expected the unusually strong same-store sales to continue in the second quarter, before moderating to a percentage gain of “mid-single digits” in the third and fourth quarters. The earnings performance helped push Krispy Kreme shares up $3.44 to close at $50.25 on Nasdaq. The company sold its shares to the public at $21.