Krispy Kreme Doughnuts reported an increase in profit for the third quarter, driven largely by revenue growth amid improved same store sales.

North Carolina-based Krispy Kreme’s third-quarter profit rose to $6.8m, as compared to $5m in the same period last year.

The doughnut chain’s revenue for the third quarter grew 6.7% to $114.2m from $107m last year. Same store sales or sales from stores open at least a year, for the quarter rose 3.7%, the company said.

Meanwhile, Krispy Kreme has signed a development agreement with Dulce Restaurants, to develop 10 new Krispy Kreme shops in Houston over the next five years.

Dulce Restaurants, a subsidiary of Dallas-based Sun Holdings, currently operates three Krispy Kreme locations in Dallas, and plans to open additional 15 Dallas shops through 2018.

Sun Holdings president and CEO Guillermo Perales said, "With our plans to continue developing the Dallas market now finalized and underway, we are excited by the opportunity to expand our relationship with Krispy Kreme and to make our one-of-a-kind sweet treats available in Houston."

The new Houston shops will offer more than a dozen varieties of Krispy Kreme’s one-of-a-kind doughnuts, including the signature hot Original Glazed, as well as a complete menu of coffee, Krispy Kreme Chillers, iced beverages and specialty drinks.

Krispy Kreme currently has over 240 shops in the US, of which approximately 150 are franchised. Additionally, the company has over 560 outlets in 22 countries outside the US, all of which are franchised.