Shares of Krispy Kreme Inc. (NAS:DNUT) sank 8.8% toward a two-month low in premarket trading Wednesday, after the donut seller reported fiscal second-quarter results that missed expectations and provided a downbeat outlook, amid "unique economic pressures" faced by consumers. The net loss for the quarter to July 3 narrowed to $3.85 million, or 2 cents a share, from $17.14 million, or 13 cents a share, in the year-ago period. Excluding nonrecurring items, adjusted earnings per share fell to 8 cents from 13 cents, and missed the FactSet consensus of 10 cents. Total revenue grew 7.5% to $375.2 million, below the FactSet consensus of $385.9 million. For fiscal 2022, the company expects adjusted EPS of 29 cents to 32 cents and revenue of $1.49 billion to $1.52 billion, both below the FactSet consensus for EPS of 41 cents and revenue of $1.56 billion. "In the second quarter consumers faced unique economic pressures, which is why we invested in our customers through Acts of Joy such as Beat the Pump dozen pricing that matched a gallon of gas and other promotions to drive brand love," said Chief Executive Mike Tattersfield. "After the end of the second quarter, we took successful pricing actions in the U.S. and U.K. markets and we have seen a significant deceleration in key commodity costs for 2023 in recent weeks." The stock has edged up 0.2% over the past three months through Tuesday, while the S&P 500 (S&P:SPX) has gained 5.3%.
Aug. 17, 2022, 7:15 a.m. EDT