High-flying doughnut maker Krispy Kreme hit by low-carb craze

The low-carb diet craze could mean some belt-tightening at the onetime high-flying doughnut company, Krispy Kreme.

For the first time since becoming a public company in 2000, Krispy Kreme is warning of lower profits for the upcoming fiscal year -- about 10 percent below prior forecasts.

"For several months, there has been increasing consumer interest in low-carbohydrate diets, which has adversely impacted several flour-based food categories, including bread, cereal and pasta," said Scott Livengood, chairman, president and chief executive officer.

"This trend had little discernable effect on our business last year. However, recent market data suggests consumer interest in reduced carbohydrate consumption has heightened significantly following the beginning of the year and has accelerated in the last two to three months."

The phenomenon has affected the company's revenues, especially sales of packaged doughnuts to grocery stores, which fell 0.4 percent over the 12-week period ended April 18.

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