Krispy Kreme stock rises on Q1 beat

Krispy Kreme Inc.'s shares increased 3.1% in premarket trading on Thursday after the company announced its first-quarter results, which exceeded analysts' estimates for both revenue and earnings. 

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CEO Mike Tattersfield stated during the earnings call that the company is experiencing strong momentum. The company reported net income of $1.6 million, or breakeven earnings, which surpassed last year's net income of $6.5 million and earnings of 2 cents per share. 

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The adjusted earnings per share (EPS) were 9 cents, exceeding the FactSet consensus of 7 cents per share. First-quarter revenue was $419 million, up 12.5% from the same period last year, with U.S. revenue growing 13.5% year-over-year to $281.3 million. 

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The company's performance was boosted by its omni-channel strategy and Insomnia Cookies, as well as global campaigns for Valentine's Day and St. Patrick's Day, and specialty offerings like Biscoff doughnuts.

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 The e-commerce revenue grew 23% year-over-year, which was the company's strongest quarter ever. Tattersfield also highlighted the company's international business, specifically citing the Japanese and Canadian markets. Krispy Kreme reiterated its full-year guidance of $1.65 billion to $1.68 billion, and adjusted EPS of 31 cents to 34 cents. 

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The company's stock has risen 45.3% this year, outpacing the S&P 500 index's gain of 7.8%. Four of the eight analysts surveyed by FactSet have an overweight or buy rating, and four have a hold rating for Krispy Kreme.

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