Bloomberg: Krispy Kreme Probed by SEC on Accounting, Forecasts Krispy Kreme Doughnuts Inc., the second-biggest U.S. doughnut chain, said the Securities and Exchange Commission is investigating how the company accounted for the repurchase of franchises and earnings forecasts.
Krispy Kreme was buying back franchises and it didn’t disclose that the CEO’s ex-wife was one of the sellers. That doesn’t sound good. I’ve posted Krispy Kreme contracts so you can see what the company has disclosed in the past.