Krispy Kreme's future might not be so sweet

WINSTON-SALEM, N.C. — The economy is taking a bite out of a Winston-Salem-based Wall Street sweetheart.

Krispy Kreme stock, which once sold for more than $44 a share, opened at $1.26 Monday and lost 7 cents by the close of the stock market.

Credit research firm Moody's Investors Services predicts the doughnut maker is one of 15 businesses – including Rite Aid, Blockbuster and Chrysler – that will go bankrupt this year.

The credit research firm says Krispy Kreme "over-expanded during the doughnut heyday of the 1990s, taking on a lot of debt."

Moody's also says the chain has not earned an operating profit in three years.

But Brian Little, a spokesman for Krispy Kreme, said Monday that the future is bright for the company.

"Krispy Kreme is a company that's been around for 71 years, and we don't see a reason why we won't be around for another 71 years," Little said.

Little also said the company has reduced its debt by $44 million in the last two years and plans to open two more stores in the Southeast in the next two months and is eying expansion in the Triangle.