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Krispy Kreme again misses SEC deadline

Krispy Kreme Doughnuts Inc. missed another deadline Wednesday for a regular quarterly filing with the U.S. Securities and Exchange Commission, the company announced.
/ Source: The Associated Press

Krispy Kreme Doughnuts Inc. missed another deadline Wednesday for a regular quarterly filing with the U.S. Securities and Exchange Commission, the company announced.

The SEC had granted the troubled company an additional five days to file the required 10-Q report after it missed the original Friday deadline.

But in a statement issued Wednesday after the close of business the company said it needed more time to analyze certain "franchise matters. The company said the delay was primarily due to the consolidation KremeKo, Inc., which develops stores in Canada for the Winston-Salem-based chain. The analysis isn't expected to have a "material impact" on net loss for the quarter, the statement said.

Krispy Kreme owns 34 percent of KremeKo, which announced Monday it will close three stores in Ontario, reducing the number of stores there from nine to six.

Krispy Kreme's fiscal third quarter ended Oct. 31; companies are required to file quarterly 10-Q reports no later than 40 days after the quarter's end.

A Krispy Kreme spokeswoman did not immediately return a telephone message left Wednesday seeking comment.

Krispy Kreme's stock closed Wednesday at $10.63, up 60 cents, or 6 percent, on the New York Stock Exchange.

The once-high flying company last month posted a $3 million third-quarter loss, its second losing quarter of 2004. Shares of the company are now trading at less than a quarter of their 52-week high.

Another source of concern is an ongoing SEC investigation that the company has said is looking into franchise buybacks and its future earnings outlooks.

Krispy Kreme said previously that it incurred about $3 million in fees during the third quarter from the SEC probe and related matters, and expects more such expenses going forward. The company also has said it has set aside $2 million to deal with potential expenses related to accounting issues involving two franchisees.

Krispy Kreme has closed a number of stores since May. The company also said it would close a $4.6 million doughnut plant in northeast Ohio due to oversupply problems.