Krispy Kreme to Open Smaller Units

WINSTON-SALEM, N.C. Krispy Kreme is looking to build smaller retail shops.

The news comes as the company said its revenue fell 9% to $94.3 million from $103.4 million in the quarter. It blamed its poor results on doughnut mix and shortening, as well as higher gasoline prices.

Douglas Muir, executive VP and CFO, said poor economic conditions have reduced the prices of commodities, meaning that the company could benefit from cost reductions in the fourth quarter and into next year.

Though it is looking to expand internationally, Krispy Kreme's franchisee in Hong Kong is going into liquidation after just a couple years of operating. Krispy Kreme said it still has signed franchise development deals for Turkey, Malaysia and three major cities in China: Shanghai, Beijing and Tianjin.