The doughnut hole grew larger for Krispy Kreme in the first quarter of fiscal 2008, as sales dropped and the net loss widened in the midst of the company’s comeback attempt.
The Winston-Salem, N.C., company’s loss for the quarter ended April 29 was $7.4 million, or 12 cents per diluted share. That’s wider than the loss of $6 million, or 10 cents a share, posted in the same period last year.
Revenue was down to $110.9 million from $119.4 million in the year-ago period.
The company said the results included a charge of $9.6 million related to a prepayment fee and the write-off of deferred financing costs. They also included a credit of $14.9 million related to the fair value of securities the company owes shareholders after the settlement of a class-action lawsuit.
Krispy Kreme’s disappointing results come as the company tries to recover from accounting scandals and faltering sales that started about three years ago.
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