Net income in the quarter ended Nov. 2 was $8,106,000, equal to 12c per share on the common stock, up 20% from $6,780,000, or 10c per share, in the same period a year ago. Revenues rose 8% to $122,871,000 from $114,231,000.
“Our deliberate and strategic use of promotional incentives and a higher level of marketing spend proved successful in growing our top line,” Tony Thompson, president and chief executive officer, said in a Dec. 9 conference call with analysts. “Now that we have regained traffic momentum, in the fourth quarter, we are looking to balance top-line growth with improved shop operating margins.”
In the wholesale channel, sales increased nearly 7% to $40,187,000 from $37,680,000. Mr. Thompson said Krispy Kreme’s long-term goal is to increase the percentage of sales comprised of longer shelf life products.
“We took another step in that direction when we recently introduced Krispy Kreme apple Danishes and raspberry Danishes,” he said. “These products are individually packaged and are a great pairing with Krispy Kreme coffee that can be brewed at home or work.”