US doughnut maker Krispy Kreme has reported a sales fall of 9.3% in its third quarter. The company told the Securities and Exchange Commission that it expected to report revenue in the region of US$117m for the quarter ended 29 October, down from $129m in the year-ago period.

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Krispy Kreme partly attributed the decline to store closures, including some of its flagship stores where doughnuts are made on site.


The company said average weekly sales per factory store for the third quarter grew about 16% in company stores and 12% systemwide, compared with the 2006 third quarter.


“While we still have a way to go in Krispy Kreme’s turnaround, we are encouraged by our progress in the third quarter,” said Daryl Brewster, president and CEO. “The company has agreed to settle the class action lawsuit and most of the shareholder derivative litigation. Average unit volumes rose at company-owned stores. Krispy Kreme continued its international expansion while filling several key management positions.”

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