SEC Probing Krispy Kreme Books

Krispy Kreme ( KKD) slumped 9% early Thursday after the doughnut maker said regulators were probing its accounting.

The Winston-Salem, N.C., company said the Securities and Exchange Commission has asked for information that "generally concerns the company's franchise reacquisitions and the company's previously announced reduction in earnings guidance."

Krispy Kreme was long a Wall Street favorite, but the company's shares plunged this spring after it slashed earnings guidance, famously blaming the nation's low-carb craze.

"Krispy Kreme has no higher priority than the confidence of our shareholders, customers and employees," CEO Scott Livengood said in a Thursday press release. "While we are confident in our practices, we understand and respect the SEC's responsibilities and will continue to cooperate fully throughout this process."

The company's shares slipped $1.74 to $16.92 early Thursday.

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