: Krispy Kreme stock set to fall after profit matches expectations but revenue comes up shy

Shares of Krispy Kreme Inc. DNUT were indicated down nearly 2% toward a 7-week low in premarket trading Thursday, after the donut seller matched second-quarter profit expectations but came up shy on revenue. The company reported net income of $223,000, or about breakeven on a per-share basis, compared with a net loss of $3.8 million, or 2 cents a share, in the year-ago period. Excluding nonrecurring items, adjusted earnings per share slipped to 7 cents from 8 cents but matched the FactSet EPS consensus of 7 cents. Total revenue rose 9.0% to $408.9 million, but was below the FactSet consensus of $411.5 million. U.S. revenue grew 9.3% and international revenue increased 4.8%, and ecommerce revenue growth was 18.0%. Growth in the U.S. was driven by higher prices, marketing activations and the expansion of the company’s Delivered Fresh Daily (DFD) strategy. For 2023, the company affirmed its guidance ranges for adjusted EPS of 31 cents to 34 cents and for revenue of $1.65 billion to $1.68 billion. The stock has slipped 3.9% over the past three months through Wednesday while the S&P 500 SPX has gained 8%.

Market Pulse Stories are Rapid-fire, short news bursts on stocks and markets as they move. Visit MarketWatch.com for more information on this news.

Previous post : Wolverine World Wide stock slides after shoe maker cuts profit view and names new CEO
Next post : Coach parent Tapestry to acquire Michael Kors parent Capri in cash deal valued at $8.5 billion