Krispy Kreme Doughnuts 4Q losses widen; settles lawsuit

11/01/06 - newratings.com

NEW YORK, November 1 (newratings.com) – Krispy Kreme Doughnuts Inc (KKD) Tuesday reported wider losses for the fourth quarter. The company also announced that it had agreed to pay $75 million to settle a class action lawsuit.

Krispy Kreme Doughnuts said its losses in the three months ended January 29 rose to $37.7 million, or $0.61 per share, from $36.1 million, or $0.58 per share, in the year-ago quarter. The company’s revenues declined to $122.2 million in the fourth quarter, from $161.7 million in the same period a year earlier. Krispy Kreme Doughnuts’ net losses for the full year stood at $135.8 million, or $2.20 per share, as compared to $198.3 million, or $3.22 per share, in fiscal 2005. The company’s annual revenues declined to $543.4 million, from $707.8 million in the previous year.