Doughnut chain Krispy Kreme (NASDAQ:DNUT) will be reporting earnings tomorrow before the bell. Here's what to look for.
Krispy Kreme beat analysts' revenue expectations by 2% last quarter, reporting revenues of $442.7 million, up 5.7% year on year. It was a mixed quarter for the company, with optimistic earnings guidance for the full year but a miss of analysts' gross margin estimates.
Is Krispy Kreme a buy or sell going into earnings? Read our full analysis here, it's free.
This quarter, analysts are expecting Krispy Kreme's revenue to grow 6.1% year on year to $434 million, slowing from the 9% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.05 per share.
The majority of analysts covering the company have reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Krispy Kreme has missed Wall Street's revenue estimates three times over the last two years.
Looking at Krispy Kreme's peers in the traditional fast food segment, some have already reported their Q2 results, giving us a hint as to what we can expect. El Pollo Loco posted flat year-on-year revenue, beating analysts' expectations by 1.5%, and Wendy's reported revenues up 1.6%, falling short of estimates by 1%. El Pollo Loco's stock price was unchanged after the results, and Wendy's price followed a similar reaction.
Read our full analysis of El Pollo Loco's results here and Wendy's results here.
Investors in the traditional fast food segment have had steady hands going into earnings, with share prices up 1.6% on average over the last month. Krispy Kreme's stock price was unchanged during the same time and is heading into earnings with an average analyst price target of $16.3 (compared to the current share price of $9.69).
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