The board of directors of Krispy Kreme Doughnuts Inc. has approved a share repurchase program of up to $20 million, effective immediately.
The program will be implemented through periodic purchases made either in the open market or through private transactions, in accordance with United States Securities and Exchange Commission requirements. As of March 28, 2012, the company had approximately 68 million shares outstanding.
"This share repurchase authorization is an indication of Krispy Kreme's financial strength as well as our positive outlook for the future," James H. Morgan, Jr., chairman and CEO, said in a press release. "Over the past several years, we have substantially improved our performance and strengthened our balance sheet, and are confident that we have the capital resources to implement and support our growth plans. This authorization is also consistent with our ongoing commitment to enhance long-term returns to our shareholders."
The company forecasts operating income for fiscal 2013, ending February 3, 2013, in the range of $29 to $33 million. This would represent an increase of between 13 percent and 29 percent over the $25.6 million of operating income earned in fiscal 2012.