Dunkin Brands Group Inc. Releases Quarterly Earnings
The company has announced an increase in the dividend payout.
Dunkin’ Brands Group Inc. owner of American popular and favorite brands Dunkin’ Donuts and Baskin-Robbins has declared its earnings on Thursday. The foregoing year brought the growth for the company as it posted a full year earnings of $810.9 million a 8.3% increase as compared to the last year. DNKN’s adjusted income went up by 10% with simultaneous increase of 11% in adjusted earnings per share.
The U.S. sales of everyone’s favorite Dunkin’ Donuts and highly liked Baskin-Robbins touched a respective increase of 1.4% and 6.1%. DNKN has a decline of around $0.56 per share after its diluted EPS fell down to $1.08 by a decrease of 34.5%. The decline is due to the investment impairment of the joint venture of the country in Japan. Diluted adjusted EPS was calculated to be $1.93 after going up by 10.9%.
The Canton, Massachusetts group reported that the sales in U.S. of Dunkin’ Donuts brand decreased by 0.8%. In addition, the overall across the world sales increased chiefly, due to the global development of stores. Moreover, the sales of Baskin-Robbins in U.S. increased by 4.4%. For the fourth quarter, the revenue of the company accumulated to be $203.8 million which went up by 5.5% in comparison with last year’s same period.
Because of the investment impairment in Japan venture the quarterly reflection was that the diluted EPS decreased by $0.60 to a loss of $0.10. The diluted adjusted EPS amounted to $0.52 registering an increase of 13%.
For the full year, the company’s adjusted operating income was calculated to be 1.8% higher in comparison with last year’s at $108 million. The $4 billion firm disclosed that in the foregoing year it opened 495 new outlets out of which 349 outlets were in U.S. while 146 were opened across the globe. Recently, it signed up with an existing franchisee to open five new restaurants in Louisiana. The prospect is likely to give high profitability to the company.
DNKN gave positive news to the investors when it revealed that it intends to pay dividend of $0.3 per share which accounts for 13% increase as compared to the dividend paid last year. In addition, the company declared its intended buyback program of around $200 million.
Just like McDonald’s Corporation strategic introduction of All-Day Breakfast Menu, DNKN has also incorporated innovations in its menu. The company’s CEO Nigel Travis stated: “We analyze what McDonald’s all day breakfast did to our business; it was very small amount.” The CEO stated the burger chains were losing store count which is appalling however DNKN is not “going out of the market.” He pressured that the company has always been known for its high valued and great quality product.
Speaking about how the company will tread on the path to growth, Travis told the analysts that the group has developed a five-point plan. He further explored about the program stating: “It’s focused on coffee, innovation, value in small pricing, digital, and improving the store experience.”
At the market which closed on Thursday, Dunkin’ Brands Group Inc. stock price stood at $43.36.
