Krispy Kreme Doughnuts (NYSE:KKD) Has Solid Quarter

There was little to complain about when looking at the latest quarter of Krispy Kreme Doughnuts (NYSE:KKD), as costs fell and revenue was up.

Canaccord Genuity commented on the quarter saying, "Krispy Kreme swung to a third-quarter profit as revenue rose and expenses fell. For the period that ended October 31, Krispy Kreme earned $2.4 million, or $0.03 per share, compared with a loss of $2.4 million, or $0.04 per share, in 2009’s third quarter. Overall sales rose 7.9% to $90.2 million from $83.6 million, as all-important same-store sales rose 5.0% from a year earlier, the eighth-consecutive quarterly increase. The results beat the average forecast from analysts for a loss of a penny per share on $88.9 million in revenue. Helping was a decline in general and administrative expenses to $1.3 million, and interest expenses to $700,000, reflecting Krispy Kreme’s lower debt position this year. In a statement, the company applauded its revenue growth and positive bottom line, but noted “there is much more work to be done to restore our largest business segment to consistent profitability. 'We are devoting considerable attention toward this critical objective and over time, expect that the sales growth.'

"By the end of the quarter, the company had 649 Krispy Kreme stores, up 16 from the same quarter last year. Of these, the company owned 85, while franchisees owned another 564. Krispy Kreme said that over the next fiscal year it expects to open five to 10 stores that it will operate, five to 15 franchised stores in the U.S. and more than 30 franchised stores abroad."

Kripy Kreme closed Friday at $7.30, down by $0.14, or 1.88 percent.