Krispy Kreme Misses Deadline

Krispy Kreme Doughnuts Inc., the No. 2 U.S. doughnut maker, missed its Dec. 10 deadline for filing a quarterly report with the Securities and Exchange Commission as it analyzes its accounting.

The company’s so-called 10-Q financial statements must be filed within 40 days after a quarter ends, SEC spokesman John Nester said Monday. Krispy Kreme’s fiscal third quarter ended Oct. 31. The company, which is based in Winston- Salem, N.C., is analyzing the accounting of its franchises, according to an SEC filing.

“It probably means they still don’t have numbers they feel they can rely on or that their auditors can sign off on,” said Donn Vickrey, executive vice president of Camelback Research Alliance Inc., an independent research firm in Scottsdale, Ariz. “Nowadays it’s fairly rare not to file on deadline.”

The SEC has opened a formal investigation of the company’s accounting practices, Krispy Kreme said in October. Formal probes, which commissioners must vote to approve, give SEC staff the power to subpoena documents and call witnesses to testify.

Shares of Krispy Kreme dropped 17 cents to $9.68 on the New York Stock Exchange. The shares have fallen 74% this year.

Amy Hughes, a Krispy Kreme spokeswoman, didn’t return telephone calls for comment. Nester said the SEC didn’t comment on individual companies.