Dispute sours earnings

Tuesday, March 18, 2003 | 9:55 a.m.

CHARLOTTE, N.C. -- A $9.1 million arbitration judgment in a franchise dispute took a big bite out of Krispy Kreme Doughnuts Inc.'s quarterly earnings, which would have risen by a third if it had not lost the arbitration case, the company said today.

The Winston-Salem-based chain said net income for the fourth quarter fell to $5.6 million, or 9 cents a share, from $8.3 million, or 14 cents a share, a year earlier. Without the arbitration charge, earnings rose to $11.3 million, or 19 cents per share, which was an increase of 36 percent over the same quarter last year.