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Stale Donuts

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Krispy Kreme Doughnuts(NYSE:KKD) missed on its quarter two earnings. Net income was down 4.3 percent, which is equivalent to $4.72 million. Analysts were expecting 16 cents a share for adjusted profits, but Krispy Kreme reported two cents below the estimate. The company cut full year earnings per share forecast to 59 cents from 63 cents.

Krispy Kreme has been trying to take clients away from Starbucks Corporation(NASDAQ:SBUX) and Dunkin Brands Group Inc. (NASDAQ:DNKN)-Dunkin Donuts by introducing different varieties of coffee drinks. The emphasis is not to only focus on donuts. I guess the strategy is not working because it’s only driving up expenses. For example, for the second quarter general and administrative expenses increased 19 percent.