Earlier this month, Krispy Kreme ousted chairman, president and CEO Scott A. Livengood and named Stephen F. Cooper, chairman of financial consulting group Kroll Zolfo Cooper (KZC) LLC, as interim CEO, and Steven G. Panagos, also of KZC, as president and COO.
That move followed diminished stock prices due to an SEC investigation into the company's accounting practices, shareholder lawsuits and a low-carb craze that has consumers shying away from Krispy Kreme's main offering. For the eight weeks ended Dec. 26, average weekly sales per store decreased for the doughnut maker about 18% (25%, for company-owned stores), compared to the corresponding weeks of 2003.
Yesterday Krispy Kreme's shares rose from just under $8.80 to around $9.40 after the news but then closed at $8.85. The locally based company operates 435 stores in 45 states, Australia, Canada, Mexico, South Korea and the United Kingdom.
© Touchpoint Markets, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more inforrmation visit Asset & Logo Licensing.
