Krispy Kreme Doughnuts rises after CEO resigns
Krispy Kreme Doughnuts (NYSE: KKD) shares are climbing higher after the doughnut maker announced that CEO Daryl Brewster resigned for personal reasons. The Winston-Salem, N.C.-based company’s board elected James Morgan, its chairman, to replace Brewster.
Brewster was named CEO in March 2006 but failed to turn the struggling former Wall Street darling around. Krispy Kreme sold its first glazed doughnut in 1937 but didn’t go public until over 60 years later in 2001. Sales have been negatively impacted by healthier eating trends, stiff competition from its larger rival Dunkin’ Donuts, bankruptcy filings by several of Krispy Kreme’s franchisees, financial restatements and misconduct accusations by former executives. In December, the company said it expects to close a significant number of stores in the foreseeable future.
Also Monday morning, the doughnut maker announced that all items on its U.S. menu now have zero grams of trans fat. Competitor Dunkin’ Donuts cut trans fat from its menu last August.
The firm’s stock, which once traded at more than $50, has been trading below $5 since mid September. In afternoon trading, KKD shares are up 10.24%, or $0.29, at $3.12. Over the last 52 weeks, shares have ranged from $2.50 to $13.93.
