Dunkin' Brands earnings fall 23% during fiscal 2010
March 24, 2011
by Eric Schroeder
CANTON, MASS. — Dunkin’ Brands, Inc., the parent company of Dunkin’ Donuts and Baskin-Robbins, posted net income of $26,861,000 in the year ended Dec. 25, 2010, down 23% from $35,008,000 in fiscal 2009.
Dunkin’ said results during fiscal 2010 were primarily affected by non-recurring pre-tax expenses of $62 million related to debt extinguishment, partially offset by a decrease in the company’s effective tax rate. Adjusted EBITDA during fiscal 2010 rose 1% to $282 million.
Total revenues during fiscal 2010 rose 7% to $577,135,000 from $538,073,000, while global system-wide sales also increased 7%, to $7,656,500,000.
“Increases in both global system-wide sales and Dunkin’ Brands revenues for fiscal 2010 are primarily attributable to Dunkin’ Donuts U.S. comparable store sales growth (which includes stores open for 54 weeks or more), growth in Dunkin’ Donuts and Baskin-Robbins international sales and global store development.”
Comparable store sales growth at Dunkin’ Donuts U.S., which represented more than 70% of system-wide sales, increased 2% during fiscal 2010, boosted by a nearly 5% gain during the fourth quarter. The improvement was due to product and market innovation, increased operational focus on the guest experience and an improved economic environment, Dunkin’ said.
“As a result of our business fundamental, we delivered a strong performance with resilient comparable store sales and excellent store development, not only in 2010, but throughout the economic downturn,” said Nigel Travis, chief executive officer of Dunkin’ Brands. “Our strategy has been to drive comparable store sales growth in our core U.S. markets, expand contiguously in the U.S. with a replicable business model, and drive accelerated international growth across both brands. This strategy will continue to guide us for the next several years.”