When it invaded Dunkin’ Donuts’ home turf of Massachusetts three years ago, there were sweet predictions for Krispy Kreme Doughnuts Inc.TV news cameras recorded the frenzy as its first store in the state opened in Medford in 2003, drawing hordes of devotees who say the doughnuts melt in your mouth.
“People were waiting in line for three hours,” Mayor Michael J. McGlynn recalled.
Today that store is closed, the hype and hoopla are history, and Krispy Kreme’s bottom line is glazed with red ink.
In fiscal 2005 , the company lost $198 million . Last year, several executives left the company after an internal inquiry found they might have inflated previous earnings. And the company acknowledges an investigation is underway by the Securities and Exchange Commission .
Company shares that once sold in the $40s closed at $8.07 in Friday trading. By one estimate, 80 stores have closed in the last two years. In Massachusetts, only the Dedham store remains. Krispy Kreme operates about 400 stores, including 316 in the United States.
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