01:49 PM EDT, 08/08/2024 (MT Newswires) -- Krispy Kreme (DNUT) on Thursday tempered its full-year guidance to reflect the recent sale of a majority interest in Insomnia Cookies as its second-quarter revenue topped Wall Street's views, sending its shares jumping.

The donut retail chain now expects 2024 adjusted earnings between $0.24 and $0.28 a share, down from its prior range of $0.27 to $0.31. Organic revenue is now seen increasing 5% to 7%, compared with the previous 6%-to-8% growth range. Krispy Kreme projects net revenue at $1.65 billion to $1.69 billion. Analysts polled by Capital IQ expect normalized EPS of $0.27 on revenue of $1.78 billion.

Last month, the company sold a majority stake in Insomnia Cookies to Verlinvest and Mistral Equity Partners in a deal representing a $350 million total enterprise value. Krispy Kreme said Thursday it received $127.4 million subsequent to the quarter following the sale and has received an additional $45 million following the refinancing of intercompany debt.

The company's net revenue increased 7.3% year over year to $438.8 million in the quarter through June 30, topping the Street's $434 million estimate. Organic revenue rose 7.8% amid a 23% jump in global points of access and a 22% digital sales gain. US net revenue advanced 8.2%, while international rose 3.9%.

Krispy Kreme shares were up 14% in Thursday afternoon trade.

"In the US, our profitable nationwide expansion is accelerating as we grow with existing customers and add new national partners," Chief Executive Josh Charlesworth said in a statement. "This includes the nationwide rollout to McDonald's (MCD), starting this fall in the Midwest with Chicago."

In March, Krispy Kreme agreed to supply its doughnuts to McDonald's restaurants across the US as part of an expanded partnership agreement with the fast-food giant.

The partnership's expansion to Chicago is a positive for the deal, Truist Securities said in a Thursday note to clients, adding that it had not expected expansion until late this year. "We believe this (McDonald's) partnership will lead to expansion with other national retailers in the coming months," Truist analysts, including Bill Chappell, wrote. The brokerage said Krispy Kreme saw a "solid" quarter overall.

The company's second-quarter adjusted EPS fell to $0.05, in line with the Street's expectations, from $0.07 a year earlier. Krispy Kreme said the results were driven mainly by increased depreciation and amortization tied to its strategy of making fresh doughnuts more available and Insomnia Cookies' continued expansion.

Price: 10.49, Change: +1.29, Percent Change: +13.97