Krispy Kreme Doughnuts Inc. said its fiscal second-quarter earnings rose 22% as the doughnut chain posted stronger revenue, driven by sales at locations open more than 18 months. However, shares fell 6.1% to $16.53 in recent after-hours trading, as adjusted profit missed expectations. Through Tuesday's close, the stock had declined 8.7% this year. Krispy Kreme's shares often swing wildly after earnings reports, as investor reaction to any surprise to the company's bottom-line performance can be intense. The Winston-Salem, N.C.-based company's revenue has mostly been rising of late. The company has also been expanding its presence abroad. "A key priority going into the quarter was to regain top-line momentum in our company shops," Chief Executive Tony Thompson said. "And we did, by very strategically using promotional incentives and other marketing tools to increase traffic count and top-line growth. The doughnut chain also has made forays into grocery shelves this year with the launch of bottled iced coffee, sold at Wal-Mart Stores Inc., and a K-Cup partnership with Green Mountain Coffee Roasters Inc. Mr. Thompson, who took the helm of Krispy Kreme in June, said he thinks the company has "only scratched the surface in capitalizing" on its retail and licensing beverage opportunities. As a result, Krispy Kreme will continue to invest to strengthen its beverage capabilities with the aim of increasing consumer awareness and market share, he said. For the period ended Aug. 3, Krispy Kreme reported a profit of $5.8 million, or 8 cents a share, up from $4.7 million, or 7 cents a share, a year earlier. Excluding deferred tax impacts and other items, adjusted earnings fell to 13 cents from 14 cents. Revenue increased 6.9% to $120.5 million. Analysts polled by Thomson Reuters expected per-share profit of 16 cents and revenue of $118 million. Systemwide sales at domestic stores open at least 18 months rose 2.8%, including 1.1% growth at company-owned shops. Same-store sales declined 2.4% at international franchise stores, excluding currency impacts. Krispy Kreme also affirmed its fiscal-year profit outlook. http://www.marketwatch.com/story/krispy-kreme-profit-misses-expectations-2014-09-09