Share in US doughnut maker and retailer Krispy Kreme fell 5.6% on Tuesday following a report that sales at some of the chain’s newer stores have been weaker than expected.
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According to a report in the Wall Street Journal, average sales at around 40 stores opened between September 2002 and April 2003 were about US$35,000 per week in the 13 weeks to 4 August, which is less than the company would expect for its newer stores, reported Reuters.
The report also claimed that same-store sales of Great Circle Family Foods, Krispy Kreme’s largest franchisee, fell 10% in its most recent quarter.
However, BB&T Capital Markets analyst Andrew Wolf said the article did not represent the big picture. Wolf said the sales figures used in the article did not include revenue from Krispy Kreme’s wholesale business, which traditionally represents around two-thirds of the company’s total volume.
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