Doughnut maker’s income decreases

Krispy Kreme Doughnuts Inc, the No 2 US doughnut maker, said second-quarter earnings fell 5.6% because of costs to close unprofitable stores.

Net income fell to $5.76 million, or 9 cents a share, from $13 million, or 21 cents, a year earlier, the company said in a statement. Revenue in the quarter ended August 1 climbed 11% to $177.4 million.

Krispy Kreme, under federal investigation for its accounting practices, had costs for closing nine doughnut stores and the Montana Mills chain of bakery cafes. After almost tripling the number of stores in four years, chief executive Scott Livengood is scaling back expansion plans amid shrinking sales gains.