Food and Beverage
Krispy Kreme Third-quarter Loss Widens
The Associated Press
12/11/08 - 11:05 AM EST
Winston-Salem, N.C. -- Krispy Kreme (KKD Quote) said Thursday its fiscal third-quarter loss widened, hurt by higher ingredient and other costs.
For the quarter ended Nov. 2, the company recorded a loss of $5.9 million, or 9 cents per share, compared with a loss of $798,000, or a penny per share, in the same quarter last year.
Revenue fell 9% to $94.3 million from $103.4 million.
Higher costs for doughnut mix and shortening as well as higher gasoline prices hurt results.
Krispy Kreme said commodity costs gas are now falling, however, which should help fourth-quarter and full-year results.
The Winston-Salem, N.C.-based company has been trying to revive its sales for about three years after low-carb dieting hit the industry during Krispy Kreme's rapid growth spurt.
The company's latest turnaround plan includes the sale of ice cream, the opening of smaller stores and an expansion overseas.
Shortly after the market opened, shares of Krispy Kreme fell 14 cents, or 5.6%, to $2.36. The stock has lost about 25% of its value this year.