Troubled US doughnut maker and retailer Krispy Kreme has posted a net loss for the third quarter and said it recently sold the remaining assets of its Montana Mills bakery chain.
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The company reported a net loss of US$3.0m, or 5 cents per share, for the third quarter ended 31 October, compared to net income of $14.5m, or 23 cents per share, in the comparable period last year.
Total revenues for the quarter, which include sales from company stores, franchise operations and Krispy Kreme Manufacturing and Distribution (KKM&D), increased 1.4% to $170.1m. Company store sales increased 9.6% to $121.2m, revenues from franchise operations decreased 5.4% to $6.2m and KKM&D revenues decreased 15.7% to $42.7m. On a comparable store basis, systemwide sales and company store sales decreased 6.4% and 6.2% respectively.
Krispy Kreme said that early in the current fourth quarter it sold the remaining assets of its struggling bakery chain Montana Mills for “a modest amount”.
“Clearly we are disappointed with our third quarter results. We are focused on addressing the challenges facing the company and regaining our business momentum,” said chairman, president and CEO Scott Livengood.
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By GlobalData
