By Krispy Kreme Inc. (DNUT, +0.07%) saw its shares drop 8.3% in premarket trading on Thursday, putting an end to its seven-session winning streak. This decline followed the company’s release of its third-quarter financial results, which revealed adjusted profit and revenue figures that fell short of expectations.
Disappointing Numbers
On a net basis, Krispy Kreme recorded a widened loss of $40.5 million, or 24 cents per share, for the quarter. This represents a significant increase from the $13.1 million loss, or 8 cents per share, reported during the same period last year. Adjusted earnings per share came in at 3 cents, falling below the FactSet consensus estimate of 6 cents.
Although the company experienced a revenue growth of 7.9%, generating $407.4 million in sales, it still failed to meet the FactSet consensus of $413.9 million. U.S. sales increased by 5.4% while international sales showed an impressive jump of 15.4%. Despite these results, Krispy Kreme reiterated its revenue outlook for 2023, projecting a range of $1.65 billion to $1.68 billion, along with an adjusted EPS forecast of 31 cents to 34 cents.
Market Performance
Year-to-date, Krispy Kreme’s stock has enjoyed a solid rally of 30.2%. However, it is important to note that on Wednesday, the S&P 500 (SPX, +0.10%) outperformed the company’s stock with a gain of 14.2%.
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