Krispy Kreme Says Firm Found No Misconduct

Krispy Kreme Doughnuts Inc. said a law firm hired by its board found no intentional misconduct in the company’s accounting for the purchase of its Michigan franchise last year.

Correcting errors and making other adjustments to its accounting for purchases of Michigan and Northern California franchises would cut net income for fiscal 2004 by 7.6% at most, the Winston-Salem, N.C.-based company said.

Shares of Krispy Kreme rose 92 cents to $11.55 on the New York Stock Exchange.