Krispy Kreme Doughnuts Inc (NASDAQ:DNUT) shares fell in pre-market trading as the Street found a hole in the doughnut maker’s earnings despite a swing back to profit in the second quarter.
The Charlotte, North Carolina-based company said revenue in the quarter to July 2, 2023, grew 9.0% to $408.9 million from the year prior, with net income of $84,000 comparing to a $2.4 million loss before.
Revenue was a touch below expectations for $410.8 million.
Organic revenue growth of 11.4% was driven by a strong performance in all three business segments. Ecommerce revenue growth in the quarter was 18.0% and represented 18.8% of retail sales in the period.
But despite the solid-looking growth, shares fell 3.9% in pre-market trading.
Chief executive Mike Tattersfield stated: “We are also pleased with our continued global expansion, as we opened three new markets during the quarter in Chile, Jamaica, and Costa Rica, all exceeding our revenue growth targets.”
He said the firm is looking to open in three to five additional markets in 2023, and recently opened in Switzerland, which marked the first opening in Continental Europe to be followed by France before year-end.
The firm reaffirmed previous guidance for the full year 2023 with net revenue seen between $1.65-$1.68 billion, giving 8% growth over 2022.