© Reuters. A box of holiday varieties appears outside a Krispy Kreme Donuts store in Burbank, California, USA, on July 1, 2021. REUTERS / Mario Anzuoni / Files
(Reuters) – Krispy Kreme Inc predicts a 23% rise in annual revenue, betting on new menu items like cotton candy and candy popcorn fritters to lure customers as the pandemic eases.
Shares rose about 3% in expanded trading, after surpassing second-quarter revenue estimates in the first earnings report since its return as a listed company in July.
Major U.S. restaurant chains, including McDonald’s Corp (NYSE :), Starbucks Corp. (NASDAQ 🙂 i Chipotle Mexican Grill Inc. (NYSE 🙂 have marked an increase in sales as travel and restaurant capacities are reduced and more people are returning to the offices.
Alongside rival fast food joints, Krispy Kreme has also expanded its menu offerings to attract returning customers, helping the “Original Glazed” donut maker predict that annual net revenue will increase by 19.4% and 23%, between $ 1,340 million and $ 1,388 million. .
Krispy Kreme also said he expects to pay an initial cash dividend of 3.5 cents per share for the quarter ending Oct. 3.
Net income rose 42.6% to $ 349.2 million in the second quarter ended July 4. Analysts had projected revenue of $ 333.4 million.
Excluding items, it earned 13 cents per share, one hundredth less than estimates, according to Refinitiv’s IBES data.
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