| | Report: Krispy Kreme New-Store Sales Weak
Tuesday September 16, 5:45 am ET
NEW YORK (Reuters) - Sales at some newer stores of doughnut chain Krispy Kreme (NYSE:KKD - News) are unexpectedly weak, the Wall Street Journal reported on Tuesday, citing internal company figures.
The figures showed that average sales at about 40 stores opened between Sept. 2002 and April 2003 were about $35,000 per week in the 13-week period ended Aug. 4. That's less than what the company says is normal for its newer stores, and less than some investors might expect, said the paper.
In addition, people who have examined the books of Krispy Kreme's biggest franchisee, Great Circle Family Foods LLC, say Great Circle's same-store sales, including wholesale shipments, dropped 10 percent in its most recent quarter, the Journal reported.
A Great Circle spokesman told the Journal that comparable-store results were "not meaningful" since they don't reflect normal sales declines at maturing stores, while Krispy Kreme's chief operating officer said the data show only a "limited set of data points."
Krispy Kreme and Great Circle representatives were not immediately available to comment to Reuters.
Krispy Kreme shares closed up 67 cents at $42.70 in trading on Monday.
biz.yahoo.com |
|
