Dunkin' Brands expects 7% sales increase for year

by Jeff Gelski
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CANTON, MASS. – Dunkin’ Brands, Inc. expects global system-wide sales of about $7.7 billion for the fiscal year ended Dec. 25, 2010, which would represent a 7% year-over-year increase, the Canton-based company said Feb. 3 when reporting preliminary fiscal year results. Dunkin’ Brands expects total fiscal year revenues of $575 million to $580 million, which would mark about a 7% increase from $538 million in fiscal 2009.

Dunkin’ Brands attributed the increases in both global system-wide sales and Dunkin’ Brand revenues primarily to growth in royalty payments, which were driven by Dunkin’ Donuts U.S. comparable same-store sales growth, Baskin-Robbins international sales and global store development. Same-store sales growth for Dunkin’ Donuts U.S., which accounts for more than 70% of Dunkin’ Brands system-wide sales, increased 2.3% for fiscal 2010 when compared to fiscal 2009 and 4.7% for the fourth quarter of fiscal 2010 when compared to the fourth quarter of fiscal 2009.

Dunkin’ Brands opened 800 global net new Dunkin’ Donuts and Baskin-Robbins locations in the fiscal year, bringing total points of distribution to 16,193 in 52 countries. Dunkin’ Donuts accounted for 574 net new locations.

“Last year was a tremendous growth year for Dunkin’ Brands and Dunkin’ Donuts in particular, which opened 206 new restaurants in the U.S. alone,” said Nigel Travis, chief executive officer of Dunkin’ Brands, Inc. and president of Dunkin’ Donuts.

Additionally, Dunkin’ Brands on Feb. 3 proposed to re-price its outstanding $1.25 billion term loan.

“The proposed re-pricing of our outstanding term loan debt will enable us to take advantage of a favorable lending market and achieve significant interest savings while maintaining our current capital structure,” Mr. Travis said.

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