7% Sales Increase Lets Diedrich Narrow Losses

Diedrich Coffee Inc. narrowed its losses in the third quarter as sales rose 7%, the Irvine-based operator of coffeehouses reported Tuesday.

The company said it lost $609,000, or 10 cents a share, for the three months ended Oct. 29, compared with a loss of $739,000, or 14 cents a share, a year ago.

Sales totaled $6 million, up from $5.6 million.

Sales at stores open at least a year--a key industry indicator--increased 1.3%, the company said.