WINSTON-SALEM, N.C. — Krispy Kreme Doughnuts, Inc. chief executive Daryl Brewster has resigned.

The Winston-Salem-based company said Monday that Brewster left his position for personal reasons but will stay with the company until the end of January.

The board of directors has elected James Morgan to replace him.

Brewster was named CEO in March 2006 to help lead Krispy Kreme through a turnaround, but the company has continued to struggle. In December, the company said its quarterly sales tumbled and it expected more franchised store closures ahead.

Morgan has been a Krispy Kreme director since 2000, and he was elected chairman of the board in 2005. He previously served as chairman and CEO of investment banking and brokerage firm Interstate/Johnson Lane.