Dunkin’ Brands earnings up sharply on U.S. strength
by Eric Schroeder
CANTON, MASS. — Net income of Dunkin’ Brands Group, Inc. in the first quarter ended March 31 was $25,950,000, equal to 22c per share on the common stock, which compared with a loss of $1,723,000 in the first quarter of fiscal 2011. Adjusted net income in the quarter was $30,623,000, up sharply from $9,522,000 in the same period a year ago.
Total revenues were $152,372,000, up 9% from $139,213,000, while operating income at Dunkin’ in the first quarter increased 23% to $55,195,000 from $44,836,000.
“We’re pleased with the performance of the business in the first quarter during which we had continued strong revenue and operating income growth,” said Nigel Travis, chief executive officer of Dunkin’ Brands Group, Inc., and president of Dunkin’ Donuts U.S. “Our core Dunkin’ Donuts U.S. segment is thriving with 7.2% comp store sales growth and accelerating net development compared to the first quarter of 2011.
“We also recently announced several exciting strategic developments, including an agreement with The Coca-Cola Co. to serve its products in Dunkin’ Donuts and Baskin-Robbins restaurants in the U.S., an agreement with NBA star LeBron James to serve as a brand ambassador in select Southeast Asia markets for both brands, and signing a partnership with Dallas Cowboys owner Jerry Jones and Hall of Fame quarterback Troy Aikman to develop Dunkin’ Donuts restaurants in the Dallas/Fort Worth region.”
Dunkin’ Donuts U.S. had operating profit of $79,941,000 and total revenues of $111,054,000 in the first quarter, which compared with $70,707,000 and $98,508,000, respectively, in the same period a year ago.
The company said Dunkin’ Donuts U.S. comparable store sales grew 7.2% in the first quarter. First-quarter gains were driven by “increased average ticket and higher traffic resulting from strong beverage sales growth, including gains across all cold beverages; differentiated breakfast and afternoon sandwich offerings such as the Angus steak, egg and cheese breakfast sandwich and the turkey, bacon and cheddar, and ham and cheese bakery sandwiches; sales of Dunkin’ Donuts K-cup portion packs; and the ‘What Are You Drinkin’’ marketing campaign.”
Baskin Robbins U.S. operating profit was $5,457,000, up 22% from $4,475,000 in the same period a year ago. Total revenues were $9,852,000, up 4% from $9,451,000.
Dunkin’ Donuts International posted operating profit of $3,161,000, down narrowly from $3,181,000 in the same period a year ago. Total revenues were $3,948,000, up 2% from $3,869,000.
Baskin’ Robbins International first-quarter 2012 segment profit was $7,282,000, on total revenues of $24,241,000. This compared with profit of $7,987,000 and revenues of $24,256,000 in the same period a year ago.